From January to September 2009, the company achieved operating income of 2,038 billion yuan, a year-on-year decrease of 7.26%, operating profit of 367 million yuan, a year-on-year increase of 297.19%, and net profit attributable to the parent company of 270 million yuan, an increase of 309.92% over the previous year, and an income of 0.16 yuan per share. The third quarter achieved operating income of 713 million yuan, a year-on-year decrease of 6.02%, operating profit of 224 million yuan, a year-on-year increase of 2447.41%, and net profit attributable to the parent company of 167 million yuan, an increase of 1776.18% over the previous year, and an income of 0.1 yuan per share. Gross margin increased significantly. The company is mainly engaged in the production and sale of soy milk powder, dairy products, grain and oil and other products. During the reporting period, the company's operating income fell 7.26% year on year, and gross margin increased 7.27% year on year to 26.44%. The reason for the increase in gross margin is that during the reporting period, the prices of soybeans, sugar and milk powder, which are raw materials used in the company's production, fell, and production costs of major products were reduced. Net profit mainly comes from investment income. During the reporting period, the company's net profit increased by 339.91% year on year. The reason for the sharp increase in net profit is that during the reporting period, the company transferred its shares in Shuanggou Liquor to the Suqian municipal government at a transfer consideration of 398 million yuan, receiving a net profit of 210 million yuan. The company plans to acquire Hubei Zhijiang Liquor on September 24. Zhijiang Liquor is the largest liquor producer in Hubei. It currently has assets of nearly 1 billion yuan and a production capacity of 100,000 tons of commercial liquor per year. It ranked first in tax in the Hubei liquor industry for 8 consecutive years, ranked among the top 10 liquors in the country for 8 consecutive years, and won one of the top 10 famous liquors in China in 2007. Acquire Zhijiang Liquor and expand the liquor industry. The company officially acquired 51% of Hubei Zhijiang Liquor on October 29. Hubei Zhijiang Liquor Industry achieved operating income of 1,381 billion yuan and net profit of 88.92 million yuan in 2008; in the first half of 2009, it achieved operating income of 785 million yuan and net profit of 76.45 million yuan. The successful acquisition of shares in Zhijiang Liquor will increase the company's annual revenue by 700 million yuan and profit by about 70-80 million yuan, which will greatly help improve the company's profitability. Earnings forecasts and ratings. We expect the company's EPS for 2009-2011 to be 0.17 yuan, 0.09 yuan, and 0.11 yuan, the current stock price is 7.37 yuan, and the corresponding dynamic PE is 45X, 81 X, 66 X. The current valuation is too high, maintaining the company's “neutral” investment rating. Risk warning. (1) General market systemic risk; (2) food safety risk.