From January to September 2009, the company achieved operating income of 280 million yuan, an increase of 33.3% over the same period last year, operating profit of 53.61 million yuan, an increase of 23.9% over the same period last year, and a net profit of 21.22 million yuan belonging to the parent company, an increase of 21.8% over the same period last year. Of this total, the operating income in the third quarter was 110 million yuan, an increase of 30.1 percent over the same period last year, and the net profit belonging to the parent company was 9.67 million yuan, an increase of 51.9 percent over the same period last year, and earnings per share reached 0.036 yuan.

The growth rate of income accelerated. Business income grew by 33.3% from January to September, of which the growth rate in the third quarter was 30.1%, an increase of 17.7% over the same period last year, which was basically the same as the previous month. The company's rapid revenue growth is due to a year-on-year increase in beer sales.

Profitability has not changed much. During the reporting period, the company's gross profit margin and period expense rate were basically the same as the same period last year, and its profitability was stable. Although the gross profit margin did not change much from the same period last year, it improved a lot compared with the previous quarter, with the gross profit margin increasing by about 5.5 percentage points in the second and third quarters compared with the first quarter. We believe that it is mainly caused by the decline in barley prices.

Return on investment is a drag on performance. The investment loss of 2.92 million yuan from January to September came from Sichuan Hengsheng Science and Technology Development Co., Ltd. Hang Seng Technology is registered in Daguan Township, Dujiangyan City, and the company acquired a 32% stake in it in August 2008.

It is expected to maintain steady growth in the future. 1) as the leading beer company in Tibet, the sales growth rate is about the average level of the industry; 2) barley prices are low throughout the year, and the gross profit margin will remain high.

Earnings forecasts and ratings. We estimate that the EPS in 2009 and 2010 will be 0.09 yuan and 0.11 yuan respectively, with the closing price of 8.2 yuan on October 30, and the corresponding dynamic PE will be 89 and 77X respectively, maintaining a "neutral" rating.

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