Angel Yeast (600298)

Equity Research 17 August 2026 | 3:18PM HKT

Angel Yeast (600298.SS) Yeast Protein emerges as a compelling new growth engine amid rising protein demand and prices; Buy

600298.SS 12m Price Target: Rmb46.60 Price: Rmb43.50 Upside: 7.1% BUY Valerie Zhou Angel Yeast delivered -0.5% YTD vs. the China consumer staple | Goldman Sachs (Asia) L.L.C. index reading of -12.6%. We attributed the outperformance to the Leaf Liu benefits of a favourable raw material downcycle, with molasses | Goldman Sachs (Asia) L.L.C. costs falling from an average of Rmb1,128/ton in 2025 to an average of Rmb837/ton in 2026TD (Exhibit 16), coupled with solid Christina Liu | Goldman Sachs (Asia) L.L.C. yeast and yeast extract demand both domestically and overseas (up 19%/12% yoy, respectively in 1H). We see a new growth driver emerging for Angel Yeast: yeast protein is uniquely positioned to Key Data _____________________________________ Market cap: Rmb37.8bn / $5.6bn capture rising global protein demand, partly catalyzed by the Enterprise value: Rmb41.1bn / $6.1bn 3m ADTV: Rmb441.2mn / $65.2mn widespread adoption of GLP-1 medications, as well as representing China a lucrative import-substitution opportunity, as it offers a similar China Cosmetics, Pet & Food M&A Rank: 3 nutritional profile and protein content (both c.80%) to whey Leases incl. in net debt & EV?: Yes

protein, but at a 78% lower price point than global whey while GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E whey protein prices are rising — with WPC34 import prices up Revenue (Rmb mn) New 16,728.8 19,119.1 21,019.4 23,139.1 30% YTD (Exhibit 3) and WPI prices skyrocketing 5x to EUR 25K/ton Revenue (Rmb mn) Old 16,728.8 18,418.3 20,157.7 21,934.0 EBITDA (Rmb mn) 2,685.5 3,195.6 3,572.6 3,789.5 in 1Q26 compared to five years ago (Exhibit 2). Additionally, yeast EPS (Rmb) New protein production volume remains small, with Angel Yeast EPS (Rmb) Old P/E (X) identified as one of the largest players at 15k tons of capacity; P/B (X) 2.5 2.6 2.3 2.1

however, global whey protein demand is large at 1.8mn/337k tons Dividend yield (%) 1.5 1.2 1.4 1.6 CROCI (%) for WPC/WPI, according to Euromonitor. 3/26 6/26 9/26E 12/26E

We believe Angel Yeast is well-positioned to benefit as the pioneer EPS (Rmb)

and market leader, thanks to its first-mover advantage and strong GS Factor Profile ______________________________ Growth global supply chain execution capabilities. The company is aggressively expanding its yeast protein annual capacity from 15k Financial Returns

tons in 2025 to 47k tons by 2028, likely reaching 100k tons in total Multiple

by 2030. According to our estimates, expansion to 47k tons as the Integrated base could contribute an incremental 2.5ppt to the company’s sales CAGR over 2026–2028E, and the yeast protein business is Percentile 20th 40th 60th 80th 100th

margin-accretive to the company, given its higher-end pricing level 600298.SS relative to Asia ex. Japan Coverage and its potential to grow along with whey protein. We look for 600298.SS relative to China Cosmetics, Pet & Food

11%/15% sales/NP CAGR for Angel Yeast during 2025-28E. From Source: Company data, Goldman Sachs Research estimates. 2H26, we look for: 1) more normalized overseas shipments, and See disclosures for details.

lower logistics and FX volatility; 2) continued molasses tailwind given

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Angel Yeast (600298.SS)

Angel Yeast (600298.SS) Income Statement (Rmb mn) ________________________________ BUY Rating since Jan 16, 2025 12/25 12/26E 12/27E 12/28E Total revenue 16,728.8 19,119.1 21,019.4 23,139.1 Cost of goods sold (12,595.7) (14,228.5) (15,573.2) (17,234.1) SG&A (2,298.7)…