Angel Yeast (600298) Quarterly Comment: Good Cash Flow Fundamentals Improved Gradually

The cash flow is good, and the fundamentals have gradually improved. The company’s revenue in the first three quarters of 19 was 55.

60 ppm, an increase of 13 in ten years.

49%; 19Q3 income 18.

4.6 billion, an annual increase of 17.

43%, a quarter-on-quarter accelerated growth, mainly due to the limited production of the Yili factory in the third quarter of last year. The relocation of the Chifeng factory resulted in the maximum production capacity. The production was limited in 19Q3. After the relocation factors subsided, revenue accelerated.

The average revenue of the company’s various business units has maintained steady growth. Among them, health products, brewing business, and YE revenue have grown rapidly.

Cash received for sales of goods in the first three quarters59.

31 ppm, an increase of 11 years.

41%.

Net operating cash flow 7.

470,000 yuan, an increase of 35 in ten years.

66%.

Net profit attributable to mothers in the first three quarters of 19 6.

66 ppm, a decrease of 1 per year.

21%; 19Q3 returns to mother’s net profit 2.

10,000 yuan, an increase of 17 in ten years.

76%.

The negative growth of the company’s net profit was mainly due to the decline in gross profit margin, the increase in expense ratio and the increase in income tax rate.

1) The gross profit margin in the first three quarters dropped by 0.

3 points.

2) The company’s period expense rate increases by 0 every year.

47pct, in which the sales expense rate increases by 0 every year.

82pct; the overhead rate increases by 0 every year.

05pct; R & D expense rate increases by 0 every year.

86pct; financial expense ratio decreases by 1 every year.

17 points.

3) Interest rate increased by 5 in the first three quarters.

08pct (0.

USD 6.1 billion was mainly due to the increase in expenses due to the exhaustion of the supplementary deductions to be made up by the parent company and the profitability of Angel Russia.

19Q4 is expected to continue its rapid growth and long-term performance is expected to gradually improve. We expect the company’s 19Q4 revenue to continue to improve its profits.

The recovery of the company’s Yili plant capacity and the steady increase in the Egyptian plant are expected to drive a rapid growth 佛山桑拿网 in 19Q4 revenue.

We expect 19Q4 net profit is expected to continue to improve.

Mainly due to: 1) 18Q4 net profit base income due to the production limitation of the Yili factory and exchange rate fluctuations.

2) The operating rate of the merged company increased, and the gross profit margin increased.

3) The company continues to strengthen expense control and expects to reduce expense ratio.

The profit forecast predicts that the company’s net profit attributable to the parent in the years 19-21 will be 9 respectively.

03/10.

38/12.35 ppm, a five-year increase of 5.

38% / 15.

01% / 18.

97%, EPS is 1.

10/1.

26/1.

50 yuan / share, corresponding to PE is 25/21/18 times.

The company’s PE is lower than comparable companies. Considering that the company’s performance has gradually improved, it is given 25武汉夜网论坛 times PE for 20 years, corresponding to a reasonable value of 31.

5 yuan / share, maintain BUY rating.

Risk reminders: Tighter environmental protection policies have resulted in less-than-expected increase in production capacity; exchange rate changes affect foreign exchange losses of overseas subsidiaries; lower white sugar prices have led to lower white sugar net profit; and food safety issues.