The company released its 2015 annual report: it achieved annual revenue of 1,888 billion yuan, an increase of 26%; realized net profit attributable to the parent company of 149 million yuan, an increase of 139.6% over the previous year; net profit after deduction of 155 million yuan, an increase of 232% over the previous year, and EPS 0.48 yuan. The performance was better than expected. It is proposed to transfer 10 additional shares for every 10 shares, and a cash dividend of 1 yuan (tax included) will be distributed. Pastes are still the main products, and the product line is richer: the company is the largest domestic manufacturer and operator of paste food. Southern black sesame paste has long had the highest market share of similar products in China, with a market share of more than 40%, and is still the company's main product. In 2015, sales reached a record high, with estimated sales of around 1 billion yuan; sales of newly launched vegetable protein drinks such as black sesame milk and black dark milk have steadily increased, and phased results have been achieved. The company launched a variety of new products to the market in the fourth quarter, including ready-to-eat canned black sesame paste, “dark brown milk” Tetra Pak, and paste gift packs with the theme of “Bama” longevity, which enriched the product line and also formed a new economic growth point. As a result, sales revenue in the fourth quarter increased sharply by 50.6% year-on-year to 856 million yuan, accounting for 45.3% of annual sales. The consolidated gross margin increased by 1 percentage point to 32.6%. Interest income & recoveries affected the net profit margin: the company's sales expenses were 392 million yuan, up 19% year on year, and the sales expense ratio decreased slightly by 0.3 pct to 20.76%, mainly due to the company increasing brand and channel building efforts; management expenses of 110 million yuan, up 29.4% year on year, and management expenses rose slightly by 0.7 pct to 5.8%; financial expenses - 127.19 million yuan, a sharp decrease of 170.9% year on year, mainly due to the increase in cash interest income after the company raised capital, plus asset depreciation calculated accordingly Losses were reduced by 40.95 million yuan, increasing the company's net profit margin by 3.8 percentage points to 7.9%. Future development trends: (1) Pasty foods, represented by sesame paste, are mainly used by middle-aged and elderly people, and the development is likely to slow down in the future; (2) Vegetable protein drinks are the most promising products in China's food industry. They have maintained a high growth rate in the past ten years. The compound annual revenue growth rate is close to 27%, and the compound annual profit growth rate is over 43%. New black milk products may perform well; (3) Foods with a healthy concept are increasingly recognized by consumers; organic foods, selenium-rich foods, etc. It has a health concept and diet therapy There are great prospects for the development of effective foods. Jingmen is rich in selenium-containing land resources. The region is rich in selenium-rich crops such as selenium-rich rice, selenium soybeans, and selenium tea. The company signed a strategic cooperation agreement with Hubei Jingmen City to focus on building a selenium-rich food industrial park, which will further develop a series of selenium-enriched products, extend the industrial chain, and achieve leapfrog development in the industry; (4) As part of the implementation of the industrial strategy cooperation signed with the Hubei Jingmen Municipal Government, the company will increase its capital by 51 million yuan in cash., Peng Dun may continue to be integrated in the future Technology groups and other projects. Profit forecast: We predict that in 2016-2018, the company's EPS will reach 0.56 yuan, 0.70 yuan, and 0.89 yuan respectively. Based on the closing price of 16.4 yuan on April 5, 2016, the corresponding PE in 2016 is 29.5 times, 23.5 times, and 18.5 times, respectively. The average valuation of the industry in 2017 is 28 times, giving it a “recommended” investment rating. Risk warning: Food safety issues, new product sales falling short of expectations