ALTO Latest Report

Financial Performance

Alto Ingredients' total operating revenue was RMB236.347 million as of December 31, 2024, a year-on-year decrease of approximately 13.67% from RMB273.625 million as of December 31, 2023. This change indicates that the company faces certain pressure in terms of revenue, which may affect its overall profitability.

Key Financial Data

1. Alto Ingredients' cost of sales in 2024 was RMB237.738 million, a significant decrease from RMB276.15 million in 2023, but the decrease in revenue was even greater, indicating certain challenges in profitability.

2. In the first quarter of 2024, Alto Ingredients' sales of specialty alcohol increased despite facing challenges such as low crushing margins and weather factors.

3. In the second quarter of 2024, Alto Ingredients' net sales were US$236 million, a decrease from US$317 million in the same period of 2023, mainly due to declining market prices, which also led to a decrease in gross profit.

Industry Comparison

1. Overall industry analysis: If most companies in the industry also face a downward trend in revenue, it may indicate a weak overall industry demand or a change in industry structure. According to search results, Alto Ingredients' cumulative revenue in the first three quarters of 2024 decreased by 23.22% year-on-year, while Meihua Bio's revenue also decreased due to falling soybean meal prices, indicating challenges faced by the industry as a whole.

2. Peer evaluation analysis: Alto Ingredients' revenue decline was greater than that of its peers, indicating that its market position may be under threat; while the revenue decline of peers was due to falling market prices and changes in the external economic environment, reflecting the challenges faced by the industry in general.

Summary

Alto Ingredients' revenue decline is mainly affected by the weakening of market demand, increased competition, and uncertainty in the external economic environment. Although cost of sales has decreased, the significant decrease in revenue has led to a decline in the company's overall profitability, and future attention should be paid to changes in market demand and competitive trends.

Opportunities

1. By improving product mix and reducing costs, Alto Ingredients can enhance its market competitiveness.

2. Exploring cooperation with leading carbon capture and storage developers may bring new business opportunities for the company in terms of sustainability.

3. If market demand gradually recovers, the company can leverage the growth potential of its specialty alcohol products.

Risks

1. If market demand remains sluggish, it may lead to further revenue decline, affecting the company's profitability.

2. Increased competition may force the company to make concessions on prices, further compressing profit margins.

3. Uncertainty in the external economic environment, such as rising interest rates or policy adjustments, may continue to negatively impact sales revenue.