From January to September 2009, the company achieved operating income of 1.169 billion yuan, down 8.6% from the same period last year; operating profit was 21.49 million yuan, down 18% from the same period last year; net profit belonging to the owner of the parent company was 6.78 million yuan, down 48.7% from the same period last year; and basic income per share was 0.03 yuan.

From July to September 2009, the company achieved operating income of 48700 yuan, down 2% from the same period last year; operating profit of 5.56 million yuan, down 36.4% from the same period last year; net profit belonging to the owner of the parent company was 1.6 million yuan, down 49.3% from the same period last year; and basic income per share was achieved.

The company's main business is feed and feed raw material sales, meat processing. Due to the continued downturn in pig prices in the first half of the year, farmers' loss led to weak willingness to fill the fence, and the prosperity of the feed industry decreased accordingly, affecting the company's income from the same period last year.

The reason why the decline of the company's net profit is greater than the operating income is that: (1) the expense rate has increased during the period. During the period, the expense rate increased by 1.2 percentage points to 8.5%; (2) the income tax rate increased by 26.3 percentage points to 46.6%.

Profit forecast and rating. It is estimated that the company's EPS in 2009 and 2010 will be 0.05yuan and 0.08yuan respectively, based on the latest share price of 5.99yuan, the corresponding dynamic price-to-earnings ratio is 120X and 75X, giving the company a "neutral" investment rating for the first time.