Event content
On March 29, 2013, the company released its annual report for 2012. during the reporting period, the company realized operating income of 1966.03 million yuan, an increase of 2.83% over the same period last year. The net profit belonging to shareholders of listed companies was 379 million yuan, an increase of-24.41% over the same period last year. Basic earnings per share were 0.0142 yuan, an increase of-29.00% over the same period last year.
The profit distribution and provident fund capital increase plan for the company in 2012 is as follows: the total net profit of the parent company in the reporting period is 3.0549 million yuan, the undistributed profit at the end of last year is 19.1821 million yuan, and the undistributed profit at the end of the parent company is 21.9315 million yuan. The undistributed profit at the end of the consolidated statement is-56.6701 million yuan, according to the principle of the lower of the undistributed profit of the consolidated statement and the undistributed profit of the parent company. The profit available for distribution at the end of the period is-56.6701 million yuan. As the profit available for distribution is negative and there is no profit available for distribution, according to the Company Law, the articles of Association and related regulations, the company intends not to distribute profits this year. Through the study of the annual report, we believe that the company's main investment highlights are:
Investment highlight
The company's main feed business income decreased compared with the same period last year, while the aquaculture business income increased over the same period last year. In 2012, the company achieved a total operating income of 1.96603 billion yuan, an increase of 2.83% over the same period last year, with a total profit of 8.27 million yuan, of which the net profit belonging to the shareholders of the listed company was 3.7982 million yuan. Of the total operating income, the sales volume of the feed industry decreased by 4.34% compared with the same period last year, mainly due to the company's adjustment of development strategy to reduce the production and sales of chickens, ducks, cattle feed, etc.; in the non-feed industry, the operating income of the breeding sector increased by 11.07% over the same period last year, but the cost increased by 24.45%, resulting in a 9.69% year-on-year decline in gross profit margin. The trade sector saw an increase in sales revenue and profits during the reporting period, and the gross profit margin increased by 7.33% over the same period last year.
The company's available-for-sale financial assets may contribute to the company's larger profits in 2013. Announced on March 25, 2013, the company holds 8900287 shares of founder Securities, with a shareholding ratio of 0.146% and a book cost of 3.2 million yuan. As of March 28, 2013, the closing price of Fangzheng Securities was 7.43 yuan per share, and the company accounted for the above stock investment as available-for-sale financial assets. The company will choose the opportunity to dispose of the above available-for-sale financial assets according to the securities market conditions, in order to maximize the company's investment income, or will contribute a larger profit to the company in 2013.
Profit forecast, valuation and investment rating
As the first listed feed production enterprise, the company is mainly engaged in feed production and processing, pig breeding and international trade. Yueyang Quyuan Land Reclamation Co., Ltd., the controlling shareholder of the company, is a wholly state-owned company in Quyuan Management District, Yueyang City, Hunan Province, and its actual control is Quyuan Management District, Yueyang City, Hunan Province. According to our profit forecast, the company's operating income in 2013 and 2014 was 2078.32 million yuan and 2353.92 million yuan respectively, an increase of 8.70% and 13.26% respectively over the same period last year, and the company's net profit was 6.72 million yuan and 9.63 million yuan respectively, up 33.59% and 43.30% respectively over the same period last year. Basic earnings per share are 0.03 yuan and 0.04 yuan respectively, corresponding to 2013 and 2014 price-to-earnings ratio of 143.00 times, 107.25 times, given a "neutral" rating.
Risk hint
(1) the risk of substantial change in the price of raw materials, and (2) the risk of sudden epidemic of pigs.
