From January to September 2009, the company achieved operating income of 140 million yuan, up 20% from the same period last year, operating profit of 8.66 million yuan, down 51% from the same period last year, and net profit belonging to the parent company of 5.34 million yuan, down 67.9% from the same period last year. Among them, the operating income in the third quarter was 48.42 million yuan, an increase of 20.7 percent over the same period last year, and the net profit belonging to the parent company was 7.64 million yuan, down 24 percent from the same period last year, and earnings per share was 0.04 yuan.

The return on investment fell sharply by 48.2%. The company's long-term equity investment is mainly the equity of Shenzhen PepsiCo Inc. During the reporting period, Shenzhen PepsiCo Inc's net profit decreased, resulting in a sharp decline in investment income. Investment income is the main source of the company's profits, which directly determines the performance of the company. If the investment income is deducted, the company's main business is at a loss.

The profitability of the main business is poor. During the reporting period, the company's gross profit margin was 25.4%, up 2.6 percentage points from the same period last year, but still 3.1 percentage points lower than the expense rate during the period. If the company can not improve the loss of the main business as soon as possible, the future performance of the company will rely more on investment income.

Earnings forecasts and ratings. We estimate that the EPS from 2009 to 2011 will be 0.04,0.03 and 0.04 yuan respectively. The current stock price of the company is 7.88 yuan, and the corresponding dynamic PE is 219X, 247X and 174X respectively, maintaining the company's "neutral" investment rating.

Risk hint. (1) market systemic risk, (2) food safety risk