Summary:

The company is based on the aquaculture industry, based on the local "three rural" issues in Hainan, the development of the local economy of the regional diversified company.

Under the background that the overall trend of the aquaculture market is not optimistic this year, the company actively adjusts the business layout, the overall operation is stable, and the performance has a faster development than the previous period. From the perspective of the company's pork production in the first half of the year, only breeding pigs in the three main subjects showed rapid growth, while other subjects showed varying degrees of decline compared with the same period last year, driven by falling prices.

Meat prices have fallen by 20%, and the trend has eased in the second half of this year. For price-sensitive investors, you can pay attention to the structural market of meat prices.

The company's outstanding performance this year lies in the small variety industry. From the performance KuaiBao, we can see that the company's performance growth rate in the first half of the year was between 530% and 570%, and the explosive growth was due to the performance dividends of subordinate financial enterprises. This shows that the company is based on aquaculture to serve "agriculture, rural areas and farmers".

The business layout has achieved initial results, with the continuous improvement of the credit system and financial system, the company's related business will further promote the development of the company's performance.

The company set foot in the education industry earlier, with Haikou Jingshan School and Hainan Vocational and Technical College respectively. From the perspective of the social enrollment situation in recent years, the enrollment scale of the company has been showing a trend of expansion, and the company's income level will be further improved with the continuous improvement of price levels and charging standards.

Profit forecast: we forecast that the company's EPS from 2017 to 2019 will be 0.10,0.11,0.16 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.