From January to September 2009, the company achieved operating income of 512 million yuan, down 10.97% from the same period last year; operating profit was-9.02 million yuan, compared with 104 million yuan in the same period last year; net profit belonging to the owner of the parent company was 13.35 million yuan, down 86.99% from the same period last year; and basic earnings per share was achieved.
From July to September 2009, the company achieved operating income of 175 million yuan, down 13.3% from the same period last year; operating profit was-3.74 million yuan, compared with 4.14 million yuan in the same period last year; the net profit belonging to the owner of the parent company was-3.2 million yuan, compared with 4.04 million yuan in the same period last year.
Gross profit margin fell by 6.95 percentage points. The company's main business includes live pigs, feed sales and education, with live pigs accounting for more than 65% of the income. From January to September, pig prices remained low, and the gross profit margin of the pig business fell from 27% to 8.6% in the first half of the year, and did not effectively improve in the third quarter. As a result, the company's comprehensive gross profit margin fell 6.95 percentage points to 14.65% in the first three quarters.
During the period, the expense rate increased by 2.38 percentage points. During the reporting period, the company's three expense rates all increased, of which the management expense rate increased by 1.98 percentage points, with a total of 2.38 percentage points to 16.83% during the period.
In addition to the decline in gross profit margin and the increase in the rate of expenses during the period, the sharp decline in investment income is also an important reason why the decline in net profit is much larger than that of income. In the same period last year, the company earned an investment income of 67.79 million yuan from the transfer of equity, but this year, the investment income was only 2.54 million yuan.
After deducting non-recurring profit and loss, the company realized EPS-0.03 yuan. During the reporting period, the company made a net non-operating income of 27.2 million yuan, including 21.406 million of the recognized income due to the land compensation of Haikou Land and Resources Bureau. After deducting non-recurring profit and loss, the company's actual performance loss in the first three quarters was about 0.03 yuan per share.
Profit forecast and rating. The company's EPS in 2009 and 2010 is expected to be 0.04 yuan and 0.06 yuan respectively, based on the latest closing price of 4.71 yuan, the corresponding PE is 118X and 59X respectively, maintaining a "neutral" rating.
Risk hint: the risk of pig blight.