On the evening of August 9, Angel yeast released its semi-annual report for 2019, which showed that the company realized business income of 3.714 billion yuan, an increase of 11.63%, net profit of 464 million yuan, a decrease of 7.66%, and earnings per share of 0.56 yuan. This is the first half-year report of Angel yeast in the past four years after the companys performance declined year-on-year in 2014.
Regarding the performance decline factor, Angel Yeast said that during the reporting period, the companys leading product revenue continued to grow, the total profit increased compared with the same period last year, basically achieved the half-year operating target, but the companys net profit decreased year on year, gross interest rate and net interest rate also declined, mainly due to Angel Russian sugar. The rising price of honey and the appreciation of Angels Egyptian currency have led to the rise of raw material cost; many domestic factories have concentrated on overhaul ahead of time; Angels Yilis production restriction has led to its rising cost and declining profit due to environmental protection; the increasing difficulty of market development and investment have led to a larger increase in sales costs; and the investment in new product testing has increased. As a result, R&D expenditure has increased greatly; the parent company has used up the deduction amount to make up the loss, and the profit has increased greatly year on year; and Angel Russias current profit has led to the increase of income tax expenses.
According to the semi-annual report, by the end of the first half of 2019, Angel yeast had borrowed 2.112 billion yuan in short-term, an increase of 38.03% over the end of the previous period, and 1.518 billion yuan in long-term borrowing, an increase of 137.21% over the end of the previous period.
The company said that the main reason for the increase in short-term loans over the end of last year was that new short-term loans were used to repay 597 million yuan of non-current liabilities due in the end of last year. The main reason for the increase in long-term borrowing compared with the end of last year is to adjust the debt structure and increase the long-term policy loans of the Export-Import Bank.
Since its listing, Angel yeasts performance has maintained a steady growth trend, only in 2002, 2012 and 2013 there has been a decline in performance. However, after high-speed performance growth from 2015 to 2017, Angel yeast showed weak performance growth in 2018.
The results show that from 2015 to 2017, the net profit of the company increased by 90.29%, 91.04% and 58.33% respectively. In 2018, the companys net profit grew by only 1.12% year-on-year.
In the first quarter of 2019, Angels yeast revenue reached 1.82 billion yuan, an increase of 11.61% over the same period last year, while net profit was 237 million yuan, a decrease of 14.56% over the same period last year. According to this years earnings, we can find that the companys net profit in the first quarter of this year declined year-on-year. It is also the first decline in Angels yeast performance since the third quarter of 2014.
Stock prices fell ahead of schedule
Prior to the official announcement of Angel Yeasts performance gap semi-annual report, on August 9, the companys share price had suffered an early fall.
Angela yeast shares started to fall in the morning of the 9th day, and fell to a stop before the noon closing. The share price was 26.86 yuan per share. In the afternoon, after a short period of holding down, the companys stock price finally opened the decline blockade. The stock price eventually rose to 26.9 yuan per share, with a full-day decline of 9.85% and a 10.19% amplitude. On that day, Angel yeast turnover was 801 million yuan, the main net inflow was - 115 million yuan, turnover rate was 3.52%.
Data from the Dragon and Tiger List show that Shanghai Stock Exchange occupies the first and third seats of the stock, buying 104 million yuan on the same day and selling 33.92 million yuan at the same time. In addition, in terms of institutional funds, one institutional seat bought 37.39 million yuan, and two institutional seats sold a total of 68.37 million yuan. It is worth noting that Guotai Junan, located in Yichang, bought 105 million yuan in two business departments on the same day, buying two seats and five seats separately. The business headquarters of Huatai Securities Co., Ltd. also bought 12.53 million yuan on the same day, ranking in the purchase of four seats.
Or affected by the sharp drop in the companys share price, Angel yeast issued a semiannual report on the evening of 9, and then issued an important announcement.
Angel yeast said in the announcement that the companys operation remained stable in the half year of 2019, affected by the cost confirmation and relocation of some projects, net profit slightly decreased by 7.66%. At present, the companys production and operation is normal, cash flow is stable, and the companys management is confident to maintain a steady growth in future performance.
Productivity Expansion Plan Continued
Although the performance in the first half of 2019 was not satisfactory, Angel Yeast announced a number of production line investment projects on the evening of 9 th.
According to the announcement, Angel yeast expects that some food raw material products will be fully produced one after another, which can not meet the demand of future market growth. It is necessary to plan and expand the existing food raw material production line as soon as possible. The expansion project will be implemented in two phases according to the overall plan of 60,000 tons of food raw materials per year. The first phase of the project is to build three mixed packaging production lines of food raw materials, increase the production capacity of food raw materials by 33,000 tons, and build a warehouse of 16,000 storage spaces. After the completion of the first phase of the project, the total capacity of the companys food raw material design will reach 83,000 tons; the second phase of the project will be implemented according to market demand.
According to the announcement, the estimated investment budget of the project is 91.268 million yuan, and the annual average sales revenue is 240 million yuan, with an average annual net profit of 8%.
At the same time, Angel yeast plans to design according to its annual output of 8000 tons. It plans to add three new spray towers to its wholly-owned subsidiary, Angel yeast (Binzhou) Co., Ltd. (hereinafter referred to as Angel Binzhou) in two phases. One spray tower with an annual output of 2200 tons will be built in this period, and one steel structure workshop with a new output of 4000 square meters will be planned, with a plan of 2800 square meters. One square metre warehouse; transfer the main body of Angel Yili, Angel Chongzuo spray tower, supporting equipment and other supporting process equipment to Angel Binzhou. The project is scheduled to be implemented in August 2019 and is expected to be completed and commissioned in April 2020, with a total construction period of 8 months. The total budget investment is 22.224 million yuan, all of which are self-raised by Angelbin Prefecture. In addition, Angel yeast also plans to build Angel Enterprise Technology Center innovation capacity-building project, with a budget investment of 96 million yuan. The company believes that the implementation of the project can accelerate the construction of innovation system in yeast industry and related biological fields, improve the function of public service platform of biotechnology, and enhance the ability of independent innovation, which will strongly promote the future development of the company. Source: Responsible Editor of Securities Times: Yang Bin_NF4368
At the same time, Angel yeast plans to design according to its annual output of 8000 tons. It plans to add three new spray towers to its wholly-owned subsidiary, Angel yeast (Binzhou) Co., Ltd. (hereinafter referred to as Angel Binzhou) in two phases. One spray tower with an annual output of 2200 tons will be built in this period, and one steel structure workshop with a new output of 4000 square meters will be planned, with a plan of 2800 square meters. One square metre warehouse; transfer the main body of Angel Yili, Angel Chongzuo spray tower, supporting equipment and other supporting process equipment to Angel Binzhou.
The project is scheduled to be implemented in August 2019 and is expected to be completed and commissioned in April 2020, with a total construction period of 8 months. The total budget investment is 22.224 million yuan, all of which are self-raised by Angelbin Prefecture.