Judging from the data of the three quarterly reports, the company's performance is more outstanding, which is significantly higher than that of last year. Under the premise of a certain turn in the industry, the company's three major varieties of japonica rice, indica rice and rice will usher in the sales peak in winter, the average price has fluctuated between 4-6 yuan / kg, with a high stable line.

This year, another major industry of the company, the grain and oil industry, has also developed rapidly. The fourth quarter is the traditional peak sales season, and demand is stronger than in other months. NetEase, Inc monitoring data show that at the end of October, the average retail price of barreled oil was 16.51 yuan / liter, while the price of blended oil was 13.83 yuan / liter.

In terms of small variety industry, the company's dairy industry has experienced Yuanling "poisoned milk powder" in the previous period.

After the incident, sales were affected to a certain extent, but this was not caused by excessive bacteria caused by production problems. After a simple transportation adjustment, coupled with media public relations, the original sales will be restored soon. This year, the dairy industry is the fourth year of continuous adjustment, and the room for the industry to go down is limited. If the milk price goes up, it will be directly good for the company's products. The transformation of the leisure food industry has brought opportunities for the company. This year, the 31 million turnover of manufacturers' orders has shown the potential of the market, and the development of diversification in the future will gradually improve the performance of the company.

In addition, the company's product cycle is at a low level. In the past two years, in order to actively expand production capacity, the company has acquired and leased a number of companies, and actively developed the southwest market. The company's complete industrial chain will gradually cover the Yangtze River Basin, making full preparations for the company's performance improvement.

Profit forecast: we forecast that the EPS of the company from 2016 to 2018 will be 0.09,0.17,0.26 yuan respectively, giving the company an "overweight" rating.

Risk tips: 1) the risk of market change; 2) regulatory risk; 3) the risk of industrial policy change.