Event: The company disclosed its H1 2025 interim results: Angel Yeast Co.,Ltd. achieved revenue of 78.99 billion yuan in H1 2025, up 10.10% YoY; net profit attributable to shareholders reached 7.99 billion yuan, up 15.66% YoY; adjusted net profit attributable to shareholders was 7.42 billion yuan, up 24.49% YoY. In Q2 2025, the company achieved revenue of 41.05 billion yuan, up 11.19% YoY; net profit attributable to shareholders reached 4.29 billion yuan, up 15.35% YoY; adjusted net profit attributable to shareholders was 4.05 billion yuan, up 34.39% YoY.
Domestic demand recovery drives growth, overseas revenue maintains rapid expansion. By product category, in H1 2025, the company's yeast and deep processing/sugar products/packaging products/food ingredients and other products achieved revenue of 57.54/3.84/1.94/15.35 billion yuan respectively, representing YoY changes of +12.38%/-34.64%/-0.48%/+24.12%; In Q2, each category achieved revenue of 29.81/2.28/0.99/7.76 billion yuan respectively, up +11.66%/+20.09%/+3.60%/+9.31% YoY. Total fermentation production reached 228,000 tons in H1, up 11.8% YoY. By region, H1 domestic/overseas revenue reached 44.04/34.62 billion yuan, up +2.07%/+22.60% YoY; the number of domestic/overseas distributors increased by 254/315 respectively. In Q2, domestic/overseas revenue reached 23.05/17.78 billion yuan, up +4.29%/+22.28% YoY; distributor numbers increased by 214/164 respectively. The rapid growth in overseas market revenue in H1 was mainly driven by effective channel expansion, as the company continues to strengthen overseas subsidiary construction and actively develop markets in Africa, Europe, and Southeast Asia. By channel, in H1 2025, the company's online/offline channel revenue changed by -8.52%/+19.23% YoY respectively; In Q2, online/offline channel sales changed by -12.08%/+22.80% YoY respectively.
Gross margin significantly improved due to declining molasses costs, profit elasticity continues to be released. Angel Yeast Co.,Ltd. achieved a gross margin of 26.09% in H1 2025, up 1.80pcts YoY, with Q2 gross margin at 26.19%, up 2.27pcts YoY. The continued improvement in gross margin is mainly attributed to the ongoing decline in raw material prices such as molasses. In H1 2025, the company's selling/administrative/R&D/financial expense ratios were 5.58%/3.43%/3.87%/0.09% respectively, changing by +0.4pct/+0.02pct/-0.24pct/-0.11pct YoY; In Q2, expense ratios were 5.57%/3.37%/4.12%/0.08% respectively, changing by +0.08pct/+0.23pct/+0.03pct/+0.23pct YoY, showing overall stable expense performance. Combining the above factors, Angel Yeast Co.,Ltd. achieved a net profit margin of 10.12% in H1 2025, up 0.49pct YoY, with adjusted net profit margin at 9.39%, up 1.09pcts YoY. In Q2, the company's net profit margin was 10.46%, up 0.38pct YoY, with adjusted net profit margin at 9.86%, up 1.7pcts YoY, demonstrating continued release of profit elasticity.
Overseas growth momentum remains strong, profit elasticity continues to materialize. The company actively capitalizes on overseas market development opportunities, accelerating overseas market expansion through strengthening overseas subsidiary construction and promoting localization of sales personnel to achieve channel penetration. Domestic sales are recovering as organizational restructuring concludes, and strategic new product yeast protein opens up downstream application space, with H2 revenue expected to maintain steady growth. Combined with current molasses supply expansion and prices in a downward cycle, the company's overall profitability improvement shows strong sustainability and high certainty.
Earnings forecast and investment recommendation: Based on the company's current performance, we slightly adjust our earnings forecast, expecting the company's net profit attributable to shareholders for 2025-2027 to be 16.51/19.36/22.12 billion yuan (previous estimates: 16.62/19.36/22.21 billion yuan), representing YoY growth of 25%/17%/14% respectively. We maintain a "Buy" rating.
Risk warnings: Domestic demand recovery falling short of expectations, raw material price volatility, overseas business expansion falling short of expectations, capacity deployment falling short of expectations, exchange rate fluctuation risks, food safety risks.
Comments