Angel Yeast Co., Ltd. (600298)

Equity Research Report　|　Industry: Yeast and Biotechnological Fermentation　|　Report Date: September 13, 2026　|　Market data and technical indicators primarily as of the September 11, 2026 close; MACD, RSI and certain moving-average indicators as of September 9, 2026, and shareholder structure data as of June 30, 2026

This report was automatically compiled and generated by AI based on publicly available information. It is for reference only and does not constitute investment advice.

1. Executive Summary

Angel Yeast generated operating revenue of RMB 9.187 billion in the first half of 2026, up 16.30% year on year, and net profit attributable to shareholders of RMB 881 million, up 10.21% year on year. However, growth in net profit attributable to shareholders excluding non-recurring items was only 7.02%, while net cash flow from operating activities declined 23.79% year on year, indicating continued pressure on the conversion of revenue growth into profit and cash flow. For full-year 2025, revenue was RMB 16.729 billion and net profit attributable to shareholders was RMB 1.544 billion. The gross margin of yeast and deep-processing products rose to 32.21%, driving the overall sales gross margin up from 23.52% in 2024 to 24.71%.

The company has strong scale and industry positioning. In 2025, it was the world’s second-largest yeast producer, with a global market share of more than 20%, a domestic market share of approximately 55%, and products exported to more than 170 countries and regions. Core growth is primarily supported by yeast and deep-processing products, overseas markets and high-value-added derivatives. Revenue from the food ingredients business increased 54.36% year on year in 2025, but its gross margin was only 10.80%; the sugar business recorded a gross margin of negative 4.86%, indicating continued divergence in profitability across business segments.

The company plans to invest approximately RMB 1.815 billion in total to build yeast protein and yeast product projects, with planned additions of yeast protein, yeast product and premix capacity. This reflects its direction of upgrading toward higher-value-added products. However, both projects still require shareholder approval and relevant regulatory approvals. Construction is expected to begin in April 2027, so their short-term contribution to revenue and profit should be limited. The projected project returns are estimates rather than commitments.

As of September 11, 2026, the share price closed at RMB 41.09, in the upper-middle portion of its 52-week range but below the MA5, MA10 and MA20. MACD remained in a weak area and RSI was 49.57, with the technical picture closer to weak range-bound trading. Net main-fund outflows over the past five trading days were approximately RMB 14.7884 million. Trading value and turnover remained within normal ranges, with no sign of sustained concentrated fund inflows. Current valuation is approximately 20x to 22x forward P/E; whether earnings growth can absorb the valuation premium will depend on profit growth, overseas operations, costs and cash flow.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Yeast and deep-processing products: Includes baker’s yeast, fresh yeast, dry yeast, brewer’s yeast, yeast extract, yeast culture, yeast protein, yeast cell walls and other yeast derivatives, as well as biological feed additives, animal nutrition and aquaculture nutrition products. Revenue was approximately RMB 11.949 billion in 2025, accounting for approximately 71.7% of revenue from principal operations, with a gross margin of 32.21%.
• Food ingredients: Primarily serves customers in baking, beverages, catering and the food industry. Products include baking ingredients, plant peptones and yeast protein. Revenue was approximately RMB 2.218 billion in 2025, accounting for approximately 13.3% of revenue from principal operations, up 54.36% year on year, with a gross margin of 10.80%.
• Sugar business: Includes cane sugar, self-produced sugar and related sugar-industry resources. Revenue was approximately RMB 1.339 billion in 2025, accounting for approximately 8.0% of revenue from principal operations, with a gross margin of negative 4.86%.
• Packaging and other businesses: Packaging products include plastic film, multilayer composite packaging film and bags, aluminum-plastic composite film and bags, and injection-molded products. Packaging product revenue was approximately RMB 360 million in 2025, with a gross margin of 2.60%. Other businesses include enzyme preparations, nutrition and health products, e-commerce, financial leasing and biofertilizers.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Angel Yeast occupies an upper-middle position in the biotechnological fermentation value chain. Using molasses and other fermentation materials as its base, the company employs strains, fermentation, extraction, drying, environmental treatment and large-scale manufacturing to supply products for baking, food seasoning, brewing, feed, agriculture, nutrition and health applications. The company is competitive in scale, brand, strain technology, application services and supply stability, but lacks complete pricing power over upstream bulk materials such as molasses.

• Core raw materials are molasses. The company also uses corn, sugars and other fermentation carbon sources, as well as nitrogen sources, inorganic salts and nutrients required for yeast cultivation. Production also requires steam, electricity and natural gas, together with packaging film, cartons, plastics and other packaging materials.
• In 2023, raw materials accounted for approximately RMB 4.037 billion, or about 39.32%, of the costs of yeast and deep-processing products; fuel and power costs were approximately RMB 1.077 billion, or about 10.49%; and manufacturing expenses were approximately RMB 1.183 billion, or about 11.52%. Raw materials and energy are the core cost variables.
• Molasses prices are affected by sugarcane cultivation, sugar-industry supply and demand, energy prices and commodity prices. The price cycle is generally approximately three to four years. The company lacks complete control over molasses prices and is broadly a price taker for bulk agricultural by-products.
• The company’s cost advantages primarily come from large-scale procurement and group bidding, production bases across multiple regions, localized molasses procurement at overseas plants, self-produced hydrolyzed sugar, process optimization, improved fermentation efficiency, higher equipment utilization and comprehensive by-product utilization.
• According to the 2023 annual report, purchases from the five largest suppliers were approximately RMB 1.327 billion, accounting for 13% of total annual purchases. This is the disclosed figure for 2023 and cannot directly represent the situation in 2025.
• Downstream customers include bread, pastry and fermented staple-food producers; food seasoning and compound-seasoning companies; beer, baijiu and other brewing companies; feed, livestock and aquaculture companies; plant nutrition, fertilizer and agricultural customers; and users of food ingredients, nutrition and health products, alternative proteins, household products and e-commerce.
• Sales channels include distributors, direct supply to major customers, online e-commerce and internet marketing. Industrial products are primarily distributed through distributors and direct supply, while consumer products are sold through distributors, direct sales and e-commerce platforms. Products have entered more than 170 countries and regions.
• Sales to the five largest customers were approximately RMB 838 million in 2023, accounting for 6.17% of total annual sales. This data comes from the 2023 annual report and cannot directly represent customer concentration in 2025. The research notes do not provide the comparable percentage for the five largest customers in 2025.
• At the end of 2025, the five largest accounts receivable balances totaled approximately RMB 134 million, accounting for 7.03% of the combined balance of accounts receivable and contract assets. This is an accounts-receivable concentration indicator rather than a customer sales-concentration indicator and cannot be directly compared with the 2023 sales share of the five largest customers.
• Standardized dry yeast and ordinary food ingredients are more vulnerable to price competition. Large baking and food-industry customers have some bargaining power in procurement. High-end yeast, yeast extract, specialty strains and customized application solutions rely more on technical certification, stability and application services, resulting in relatively higher customer switching costs.
• The company does not have strong pricing power in all businesses. Its downstream competitiveness primarily comes from scale, brand, strain technology, application services and supply stability, rather than absolute pricing power over upstream raw materials or all downstream products.
• As of December 31, 2025, the book balance of accounts receivable was approximately RMB 1.890 billion, compared with operating revenue of approximately RMB 16.729 billion; accounts receivable represented approximately 11.3% of full-year operating revenue. Net cash flow from operating activities was approximately RMB 2.478 billion in 2025, up 50.19% year on year and higher than net profit attributable to shareholders of RMB 1.544 billion, indicating relatively good collection of sales proceeds. Accounts receivable still exceeded 10% of revenue, indicating that industrial customers, distributors and overseas customers tie up a certain amount of working capital. Overall, the company’s bargaining power with downstream customers is moderately strong but not absolute. The research notes do not provide specific data on accounts-receivable turnover days, prepayments or accounts payable.
• According to the 2023 annual report, sales to the five largest customers accounted for 6.17% of total annual sales, while purchases from the five largest suppliers accounted for 13% of total annual purchases. At the end of 2025, the five largest accounts receivable balances accounted for 7.03% of the combined balance of accounts receivable and contract assets. These figures relate to different years and different indicators and cannot be directly compared or used to infer changes in customer concentration. The research notes do not provide a comparable 2025 sales share for the five largest customers.

The company occupies an upper-middle position in the biotechnological fermentation value chain: pricing power over upstream molasses and energy is limited, while barriers in the middle of the chain are built through strains, processes, large-scale manufacturing and global capacity. Downstream, the company obtains a degree of customer stickiness through brand, channels and application services. Further profit improvement will depend mainly on lower molasses and energy costs, higher capacity utilization, the release of overseas capacity and a higher contribution from high-value-added yeast derivatives such as yeast extract and yeast protein. Gross-margin data differ across platforms and consolidation definitions; the audited annual report issued by the company should prevail.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2026 interim report was disclosed on August 15, 2026. It was unaudited and covered the period from January 1 to June 30, 2026. Net profit attributable to shareholders excluding non-recurring items was RMB 794 million in the first half of 2026, up 7.02% year on year; net cash flow generated from operating activities was RMB 199.9 million, down 23.79% year on year. Net assets attributable to shareholders of the listed company were RMB 12.449 billion as of June 30, 2026, up 3.54% from the end of 2025; total assets were RMB 26.089 billion, up 2.48% from the end of 2025.

Revenue and profit both grew in the first half of 2026, but growth in net profit attributable to shareholders and net profit attributable to shareholders excluding non-recurring items was lower than revenue growth. Second-quarter net profit attributable to shareholders excluding non-recurring items was approximately RMB 410 million, up only about 0.8% year on year. The research notes primarily attribute pressure on profit growth to factors such as foreign-exchange losses and highlight overseas freight, raw-material prices, expense ratios and the conversion of revenue growth into cash collections as key areas to monitor. The 2025 annual report was audited by an accounting firm, which issued a standard unqualified opinion.

3.2 Earnings Forecasts

According to the institutional forecast summary on Tonghuashun F10 as of September 12, 2026, 31 institutions had issued forecasts for 2026 earnings over the preceding six months, while 30 institutions participated in forecasts for 2028. These figures are aggregated sell-side forecasts, not company guidance or official financial data. Forecast ranges for net profit attributable to shareholders for 2026 to 2028 are RMB 1.744 billion to RMB 1.909 billion, RMB 1.989 billion to RMB 2.333 billion, and RMB 2.248 billion to RMB 2.747 billion, respectively; corresponding EPS forecast ranges are RMB 2.01 to RMB 2.20, RMB 2.29 to RMB 2.69 and RMB 2.59 to RMB 3.16, respectively.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, the share price was RMB 41.07, total market capitalization was approximately RMB 35.7 billion to RMB 35.8 billion, trailing P/E was approximately 22x and P/B was approximately 2.87x. Based on institutional average EPS, forward P/E for 2026 to 2028 was approximately 19.5x, 16.4x and 14.4x, respectively. Based on net assets per share of RMB 14.34 at the end of the first half of 2026, the share price implied a P/B of approximately 2.86x. The current valuation is not unequivocally low, but if institutional earnings forecasts are achieved, valuation should decline gradually as earnings grow. Recent domestic institutional target prices are mainly concentrated in the RMB 47 to RMB 58 range, although target prices, valuation multiples and sample definitions vary considerably. Further valuation upside will depend primarily on a recovery in profit growth in the second half of 2026, reduced foreign-exchange impact, a recovery in overseas operations, raw-material cost trends and volume growth in new businesses such as yeast protein.

4. Recent News and Announcements

4.1 Proposed RMB 970 Million Yeast Protein Project

Angel Yeast disclosed on September 2, 2026 that Angel Yeast (Yichang) Co., Ltd. would implement a core yeast-protein technology project with total investment of RMB 970.45 million, funded with the company’s own capital. The project plans to build annual capacity of 20,000 tonnes of yeast protein and co-products, together with a 4,000-tonne premix production line and supporting environmental-protection and utility facilities. Construction is expected to begin in April 2027 and take 16 months, with an estimated investment return of 9.60%. The project has been approved by the board but still requires shareholder approval and completion of relevant approval procedures; it should not yet be regarded as under construction or as having created actual capacity.

4.2 Proposed RMB 845 Million Green Manufacturing Project for Yeast Products

Angel Yeast disclosed on September 2, 2026 that Kekedala Angel Yeast Co., Ltd. would implement a green manufacturing project for 20,000 tonnes per year of yeast products, with total investment of RMB 844.77 million funded by the company itself. The project plans to build an annual 20,000-tonne yeast-product production line and supporting facilities. Construction is expected to begin in April 2027 and take 20 months, with an estimated investment return of 12.00%. The project has been approved by the board but still requires shareholder approval and completion of relevant approval procedures. There remains uncertainty over whether construction, commissioning and full production can proceed as planned.

4.3 Combined Investment of Approximately RMB 1.815 Billion in Two Capacity-Expansion Projects

The Yichang yeast protein project and the Kekedala yeast product project involve combined investment of approximately RMB 1.81522 billion, or approximately RMB 1.815 billion, and both are expected to begin construction in April 2027. The projects focus on yeast protein, yeast extract and other high-value-added yeast products, representing capacity investment and an upgrade of the business mix rather than an acquisition, and do not constitute a major asset restructuring. Neither project has formally begun construction, so their direct short-term contribution to revenue and profit should be limited. The estimated investment returns disclosed in the announcements are project calculations rather than guaranteed returns.

4.4 Company to Hold Third Extraordinary Shareholders’ Meeting of 2026 to Review the Two Investment Proposals

Angel Yeast disclosed the shareholders’ meeting notice on September 2, 2026. The on-site meeting is scheduled for 14:00 on September 17, 2026; online voting will take place on September 17, 2026; and the record date is September 10, 2026. The meeting will review the Yichang core yeast-protein technology project and the Kekedala 20,000-tonne-per-year green manufacturing project for yeast products. As of September 12, 2026, the meeting had not yet been held. Investors should monitor the voting results, relevant regulatory approvals and project commencement.

4.5 Partial Release and Listing of Restricted Shares Under the 2024 Restricted Share Incentive Plan

The company disclosed on September 4, 2026 that restricted shares for the first unlocking period under the 2024 restricted share incentive plan began trading on September 9, 2026. The release involved 911 incentive recipients and 3,501,630 shares, representing approximately 0.40% of the company’s current total share capital and approximately 33% of the shares granted to the relevant incentive recipients. This was the release of restricted shares under an equity incentive plan, not a repurchase of shares through the secondary market by the company. It may increase potential freely tradable supply, but does not mean that the relevant personnel have already sold shares.

4.6 Repurchase and Cancellation of 61,000 Restricted Shares

The company disclosed on August 15, 2026 that four incentive recipients under the 2024 restricted share incentive plan no longer qualified for the incentive due to resignation, transfer and other reasons. The company proposed to repurchase and cancel a total of 61,000 restricted shares that had not yet been unlocked, at RMB 14.31 per share, for total repurchase consideration of RMB 872,910, excluding interest on bank deposits during the same period. Funding would come from the company’s own capital. Following the repurchase and cancellation, total share capital would decrease from 867,815,671 shares to 867,754,671 shares. This is a repurchase and cancellation related to the equity incentive plan, not a market-based share repurchase implemented for all shareholders.

4.7 Controlling Shareholder Completes Issuance of RMB 1 Billion Exchangeable Corporate Bonds

Angel Yeast disclosed on August 14, 2026 that its controlling shareholder, Hubei Angel Yeast Group Co., Ltd., completed a private issuance of technology-innovation exchangeable corporate bonds. The bonds are named 26AQKEB, with code 137208.SH, issue size of RMB 1 billion, a three-year maturity and a coupon rate of 0.01%. The controlling shareholder pledged 45,000,000 unrestricted tradable Angel Yeast shares as security and completed the relevant security and trust registration. The exchange period is from February 12, 2027 to August 10, 2029. This does not currently mean that the controlling shareholder has sold shares; whether an exchange will occur and its impact on the shareholding ratio remain uncertain.

4.8 No New Earnings Forecast, Major Regulatory Penalty or Major M&A Announcement Recently Identified

As of September 12, 2026, no earnings forecast or earnings flash report newly issued by Angel Yeast in September 2026 had been identified. The 2026 interim report disclosed on August 15, 2026 was a regular periodic report. No announcement was identified during the same period concerning a regulatory investigation, administrative penalty, disciplinary action or regulatory measure against the company. Nor was any announcement identified regarding a major acquisition, asset purchase, major asset sale or major asset restructuring implemented in September 2026.

5. Share Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Angel Yeast closed at RMB 41.09, in the upper-middle portion of its 52-week range but still under moving-average pressure in the short term. The share price was below the MA5, MA10 and MA20, with MA10 and MA20 around RMB 41.7 forming the first level of rebound resistance. The Bollinger Bands showed the price below the middle band and above the lower band, with approximately RMB 40.5 as important short-term support. MACD was approximately -0.04 as of September 9 and gave a “Sell” signal, while RSI was 49.57 and neutral. The technical picture was closer to weak range-bound trading than to a clear trend reversal. In terms of fund flows, net main-fund outflows over the past five trading days were approximately RMB 14.7884 million; September 11 trading value was approximately RMB 298 million and turnover was approximately 0.85%, both within recent normal ranges. No sustained concentrated fund inflows had appeared. Shareholder data indicated relatively high concentration among the ten largest shareholders and the presence of public funds, QFII, pension funds and ETFs, but the data was as of June 30, 2026 and therefore subject to a time lag.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data, historical prices and technical indicators. It does not constitute investment advice or a single-point price forecast.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 60%; this is a subjective heuristic judgment based on the current technical picture and fund flows, not a statistical probability): Reference range of RMB 40.50–42.30. Trigger conditions include the price remaining above RMB 40.50, volume staying within recent normal levels, resistance near RMB 42.00–42.30 but support near RMB 40.50–40.70, and no clear further expansion in main-fund net outflows. Under these conditions, the share price may oscillate between below the Bollinger middle band and the recent resistance area, showing weak range-bound recovery.
• Moderately weak decline (medium weight, approximately 30%; this is a subjective heuristic judgment, not a statistical probability): Reference range of RMB 39.80–40.50. Trigger conditions include an effective closing-price break below RMB 40.50, volume rising above recent normal levels while main-fund outflows expand, a significant weakening in risk appetite for the food and beverage sector or the broader market, or a failure to establish effective demand near RMB 40.00. If RMB 40.50 is breached with increased volume, the price may test the strong-support zone of RMB 39.80–40.00; if RMB 39.80 is also breached on increased volume, the short-term structure would weaken significantly.
• Strengthening rebound (low weight, approximately 10%; this is a subjective heuristic judgment, not a statistical probability): Reference range of RMB 42.30–42.80, with RMB 43.00 as an area to watch in a stronger move. Trigger conditions include the price reclaiming the MA10 and MA20 cluster around RMB 41.70–41.80, followed by a volume-backed break above RMB 42.30, daily trading value remaining above recent normal levels, main-fund flows turning from net outflows to consecutive net inflows, and simultaneous strength in the food and beverage sector or a catalyst improving market expectations. Only when a price breakout, higher volume and improved fund flows occur together would it be more appropriate to view the move as trend recovery rather than a technical rebound within a weak range.

③ Fund Flow and Liquidity Background

As of September 11, 2026, Angel Yeast’s turnover was approximately 0.85% and trading value was approximately RMB 298 million. During the recent period, turnover was approximately 0.4%–1.2% on most trading days, volume was approximately 4 million–10 million shares, and normal trading value was generally concentrated in the RMB 150 million–310 million range. Trading volume on September 11 was approximately 7.277 million shares, significantly below the abnormal volume of approximately 29.73 million shares on August 17. In terms of shareholder structure, data as of June 30, 2026 showed that the ten largest shareholders collectively held approximately 49.80%, the ten largest tradable shareholders held approximately 50.41% of the tradable float, and institutional investors collectively held approximately 58.58%. The structure included both the controlling shareholder and institutional funds such as Gao Yi, QFII, public funds, basic pension funds, ETFs and UBS Asset Management. The shareholder data lagged the September 11 market data by more than two months, and rebalancing or ranking changes may have occurred. In actual trading, the company is a large-cap, low-turnover stock and its order book is generally not extremely illiquid. However, short-term trend funds are not active. Relatively high concentration of holdings may reduce the effective tradable float, and the sustainability of a rebound on low volume remains to be observed.

One observable volume-confirmation signal would be the following: if daily trading value subsequently expands continuously to above RMB 400 million, turnover reaches approximately 1.1%–1.2% or higher, and the closing price holds above RMB 42.30, fund participation could be considered materially improved from recent normal levels. If increased volume occurs after a break below RMB 40.50, it would be more indicative of risk release than a positive breakout.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observation framework, not a trading instruction: Monitor whether RMB 41.70–41.80 can be converted back into short-term support.
• Observation framework, not a trading instruction: Monitor whether the RMB 42.00–42.30 resistance zone can be broken with increased volume.
• Observation framework, not a trading instruction: Monitor whether support near the lower Bollinger Band and recent lows around RMB 40.50 is effective, and whether strong support at RMB 39.80 is breached on increased volume.
• Observation framework, not a trading instruction: Monitor whether trading value can exceed RMB 400 million consecutively, accompanied by main-fund flows turning from net outflows to net inflows.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share-price performance will also be affected by multiple factors, including news, fund flows and the broader market environment. Technical indicators are inherently lagging and limited, and this analysis does not guarantee future actual performance or constitute a recommendation to buy or sell. Investors should make independent judgments based on the latest market information and bear investment risks independently.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

The global yeast industry is relatively concentrated, while growth in mature markets is limited. More growth opportunities are coming from yeast extract, nutrition and health, alternative proteins, animal nutrition, biological agriculture and baking demand in emerging markets. According to the company’s 2025 annual report, global yeast capacity exceeded 2.1 million tonnes, with Lesaffre, Angel Yeast and AB Mauri ranking among the top three players and a CR3 of more than 70%.

6.2 Competitive Landscape

• The yeast industry is capital-intensive and has relatively high technical barriers, requiring large fermentation tanks, drying equipment, environmental-protection facilities, strain screening, fermentation processes and quality-control capabilities.
• Food safety, product stability, reliable supply, customer certification and application testing constitute entry barriers. Competition has shifted from simple production scale toward comprehensive capabilities in raw-material access, strain and process technology, global bases, channels, application services and high-value-added product development.
• Active-yeast applications are relatively mature in Europe, the United States and Oceania, and incremental demand in traditional baking yeast is limited. Population growth is relatively rapid in Africa, the Middle East and Asia-Pacific, where the baking industry remains at a developing stage and active-yeast demand has relatively significant room to grow.
• China’s traditional staple-food and baking-yeast businesses are relatively mature. Future incremental growth will come more from yeast extract and food seasoning, yeast protein and alternative proteins, animal and aquaculture nutrition, biological agriculture and industrial culture media.
• Angel’s strengths lie primarily in its scale in China, cost control, brand and channels, local Chinese application scenarios and capacity expansion in emerging markets. International competitors have advantages in accumulated strain expertise developed over more than a century, high-end baking applications, certification by European and U.S. customers and global branding.
• Data such as the global yeast-industry CR3 exceeding 70% and Angel’s global market share exceeding 20% primarily come from the company’s annual reports. Public statistics on the individual market shares of Lesaffre, AB Mauri, Lallemand and Pakmaya are limited, and no consistent, cross-verifiable data has been identified.

6.3 Major Competitors

Angel Yeast competes directly with Lesaffre and AB Mauri in baking yeast, yeast extract and food ingredients. Its competition with Lallemand is more concentrated in specialized strains, brewing yeast and specialty fermentation, while competition with Pakmaya is mainly in baking yeast in the Middle East, Turkey and emerging markets. Compared with international competitors, Angel has advantages in channels in China and Asia, large-scale production and cost control, and has expanded overseas coverage through bases in Egypt, Russia and Indonesia. International companies, meanwhile, have advantages in global branding, certification by high-end customers, long-term strain accumulation and specialized application services.

7. Risk Factors

• Molasses and energy-cost volatility: Molasses is a core raw material for yeast production, and raw materials and energy account for a relatively high proportion of the cost of yeast and deep-processing products. The company lacks complete pricing power over molasses; a renewed rise in molasses and fuel-and-power prices could compress gross margin in the core yeast business.
• Overseas operating and foreign-exchange risks: The company exports products to more than 170 countries and regions and has established overseas plants in Egypt and Russia. Earnings growth in the first half of 2026 was already affected by factors such as foreign-exchange losses. Overseas freight, exchange-rate changes and cross-regional operating volatility could continue to affect profit.
• New-project investment and commissioning risk: The yeast protein project and the Kekedala yeast product project involve combined investment of approximately RMB 1.815 billion, still require shareholder and other relevant approvals, and have not yet begun construction. There is uncertainty as to whether the projects can be built on schedule, reach full production and achieve the investment returns estimated in the announcements.
• Profitability risk in the food-ingredients business: Revenue from food ingredients increased 54.36% year on year in 2025, but gross margin was only 10.80%, and the business remained in the scale-up phase. If revenue growth relies mainly on low-margin products, overall profit growth may remain below revenue growth.
• Drag from sugar and other low-margin businesses: Sugar-business revenue was approximately RMB 1.339 billion in 2025, with a gross margin of negative 4.86%; packaging gross margin was approximately 2.60%. Continued pressure on these businesses could weaken the contribution of the core yeast business’s earnings recovery to overall profit.
• Cash flow and working-capital risk: Net cash flow from operating activities declined 23.79% year on year in the first half of 2026, while accounts receivable at the end of 2025 represented approximately 11.3% of full-year operating revenue. Changes in collections and working-capital requirements from industrial customers, distributors and overseas operations could affect the conversion of profit into cash flow.
• Industry competition and pricing risk: The global yeast-industry CR3 exceeds 70%, and international competitors such as Lesaffre and AB Mauri have advantages in high-end baking, accumulated strain expertise, customer certification and application services. Standardized dry yeast and ordinary food ingredients are vulnerable to price competition, and the company does not have absolute pricing power in all businesses.
• Equity and market-trading risk: The controlling shareholder pledged 45 million company shares to issue RMB 1 billion of exchangeable corporate bonds. The exchange period is from February 12, 2027 to August 10, 2029. Whether an exchange will occur and its impact on the shareholding ratio and market supply remain uncertain. In addition, some restricted shares were unlocked in September 2026, potentially increasing freely tradable supply.

8. Conclusion and Outlook

The company’s growth thesis is primarily based on expansion of the core yeast business, optimization of molasses and production costs, overseas-base development and growth in high-value-added products such as yeast extract and yeast protein. Earnings recovery in 2025 and revenue growth in the first half of 2026 confirmed the resilience of core-business expansion. If overseas capacity utilization improves, raw-material costs remain relatively favorable, and the proposed projects proceed and reach production as planned, an improved product mix could support medium-term revenue and profit growth. Institutional average forecasts for net profit attributable to shareholders in 2026 to 2028 are approximately RMB 1.833 billion, RMB 2.168 billion and RMB 2.473 billion, respectively, but these are sell-side forecasts rather than company guidance.

At the same time, profit growth has been below revenue growth. Second-quarter net profit attributable to shareholders excluding non-recurring items increased by only approximately 0.8% year on year in the first half of 2026, while operating cash flow declined year on year. This indicates that foreign-exchange gains and losses, overseas freight, raw-material prices, expense ratios and collection conversion remain important factors to monitor. Pricing power over upstream molasses and energy is limited, while standardized yeast and ordinary food ingredients face price competition. Overseas expansion, new capacity construction and the ramp-up of new businesses may also create depreciation, capital-expenditure and operating-management pressure.

Technically, the share price is currently in a range-bound observation zone of approximately RMB 40.50–42.30. The RMB 41.70–41.80 area is a moving-average cluster, RMB 42.00–42.30 is short-term resistance, and RMB 40.50 and RMB 39.80–40.00 are important support references. Going forward, investors should combine trading volume, fund flows, improvements in overseas operations, project approvals and construction, and changes in profit and cash flow to assess whether earnings growth can continue and remain consistent with the current valuation.

Data Sources

• 2021 Annual Report of Angel Yeast Co., Ltd._Pharnexcloud
• Angel Yeast Co., Ltd. 2025 Annual Report
• Angel Yeast (600298)_Company Announcements_Angel Yeast: 2024 Annual Report_Sina Finance_Sina.com
• Angel Yeast Egypt Plant: The World’s Largest Single-Line Yeast Production Line, Chinese Manufacturing Rooted Along the Nile - Angel Yeast Co., Ltd.
• Securities Code: 600298
• Securities Code: 600298
• Angel Yeast (600298)_Company Announcements_Angel Yeast: 2023 Annual Report_Sina Finance_Sina.com
• Angel Yeast (600298) Key Indicators_Angel Yeast (600298) Financial Indicators and Analysis_Stockstar
• Company Announcements_Angel Yeast: 2022 Annual Report_Sina Finance_Sina.com
• Our group - Lesaffre
• Learn about AB Mauri and our 150 year baking heritage
• At a glance
• Angel Yeast (600298)_Company Announcements_Angel Yeast: 2026 Interim Report Summary_Sina Finance_Sina.com
• Angel Yeast (600298)_Company Announcements_Angel Yeast: 2025 Annual Report_Sina Finance_Sina.com
• Angel Yeast (600298) Earnings Forecast_F10_Tonghuashun Financial Services
• Angel Yeast (600298) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Angel Yeast (600298)_Company Announcements_Angel Yeast: Announcement on the Yichang Company’s Implementation of the Core Yeast Protein Technology Project_Sina Finance_Sina.com
• Angel Yeast (600298)_Company Announcements_Angel Yeast: Announcement on the Kekedala Company’s Implementation of the 20,000-Tonne-Per-Year Green Manufacturing Project for Yeast Products_Sina Finance_Sina.com
• Angel Yeast to Invest More Than RMB 1.8 Billion in Yeast Protein and Product Capacity Expansion_Eastmoney
• Angel Yeast (600298)_Company Announcements_Angel Yeast: Notice on Convening the Third Extraordinary Shareholders’ Meeting of 2026_Sina Finance_Sina.com
• Angel Yeast (600298)_Company Announcements_Angel Yeast: Announcement on the Unlocking and Listing of Restricted Shares for the First Unlocking Period Under the 2024 Restricted Share Incentive Plan_Sina Finance_Sina.com
• Angel Yeast (600298)_Company Announcements_Angel Yeast: Announcement on the Repurchase and Cancellation of Certain Restricted Shares, Reduction of Registered Capital and Notification of Creditors_Sina Finance_Sina.com
• China Securities Journal - Angel Yeast Co., Ltd. Announcement on Completion of the Private Issuance of Exchangeable Corporate Bonds by the Controlling Shareholder
• Angel Yeast (600298)_Stock Quotes, Market Overview_CFI
• Angel Yeast (600298) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Angel Yeast (600298) Technical Analysis of Stock Price Trends_Future Forecast_Trading Recommendations_Investing.com
• Angel Yeast (600298) Stock News_Sina Finance_Sina.com
• Angel Yeast (600298)_Company Announcements_Angel Yeast: 2026 Interim Report_Sina Finance_Sina.com

This report was automatically researched, compiled and generated by AI based on publicly available information. Information is current as of the market data and technical indicators primarily at the September 11, 2026 close; MACD, RSI and certain moving-average indicators as of September 9, 2026; and shareholder structure data as of June 30, 2026. Differences in timeliness may exist. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks independently.