Main points of investment
Income and net profit have all increased significantly. According to the 2015 China report, the company's total operating income from January to June 2015 was 967.45 million yuan, an increase of 70.67% over the same period last year, and its net profit was 251.7013 million yuan, an increase of 438.48% over the same period last year. Implement EPS0.6 meta. At the same time, the company announced that it expects its performance to grow by 325% Murray 355% from January to September. Income and net profit have all increased significantly. The 70.67% increase in revenue was mainly due to the inclusion of Zhongwei Chemical into the company's consolidated statement; the increase in net profit in the same period was mainly due to the disposal of the equity of Tianyuan Group and the increase in investment income.
The income of agriculture and animal husbandry and gross profit margin have been greatly improved, and the construction of the platform has been further promoted. Due to rising pork prices and increased marketing, the company's agricultural and animal husbandry income increased by 53.25% in 32.6 million compared with the same period last year, and the gross profit margin increased by 19.66% over the same period last year. In the first half of 2015, in addition to practically promoting the channel brand of "Yingnong Life Manor" and the product brand of "Yingnong Grass Xiang Pig", the company continued to promote the construction of three major platforms: safe food platform, parent-child family activity platform and children's industry entrepreneurship platform. Gradually build a new business model. China's strictest food safety law will be formally implemented on October 1, and the company's ecological pork value will have more room to improve.
Isooctane is officially put into production and has a broad space for the future. During the reporting period, the company officially put into production of isooctane, with an income of 452 million yuan. With the government strengthening the control of atmospheric haze and gradually popularizing and implementing the national five standards, isooctane, as a gasoline additive in line with the national five standards, has a good market development prospect. The auxiliaries industry declined slightly in a steady state. Due to the decline in crude oil prices and the decline in downstream demand, the company's auxiliaries business declined steadily, with revenue of 407 million yuan during the reporting period, down 9.17 percent from the same period last year, and gross profit margin 43.62 percent, up 0.28 percent from the same period last year.
The employee stock ownership plan shows confidence. The company plans to implement the employee stock ownership plan, with 35 million of employee self-raised funds and 15 million of the company's own funds. The implementation of the employee stock ownership plan demonstrates the company's confidence in future development.
Maintain the buy rating with a target price of 14.40 yuan. It is expected that the EPS of the company in 15-17 years will be 0.67,0.48,0.55 yuan respectively. The putting into production of isooctane and the acquisition of Little Frozen Man will bring synergy, and the company's performance will usher in rapid growth. Considering that the company's ecological pork touches the net, its profitability has been greatly improved, giving the company 16-year PE30 times and a corresponding valuation of 14.40 yuan. Maintain the buy investment rating.
Risk tips: 1) pork prices remain low; 2) demand growth in isooctane industry is slow.
