The revenue of 1-3Q2017 increased by 10.99%, and the net profit of returning mother increased by 59.98%.

On the evening of October 23, the company released its quarterly report for 2017: 1-3Q2017 achieved a business income of 3.051 billion yuan, an increase of 10.99% over the same period last year; a net profit of 82.26 million yuan, equivalent to 0.16 yuan of fully diluted EPS, an increase of 59.98% over the same period last year; and a net profit of 28.07 million yuan, an increase of 47.88% over the same period last year. The company forecasts that the year-on-year change in 2017's net profit will be between 117.32% and 163.07%.

In a single quarter, 3Q2017 achieved an operating income of 1.175 billion yuan, an increase of 49.79% over the same period last year, an increase of 11.10% higher than that of 2Q2017, and a net profit of 26.43 million yuan, an increase of 172.67% over the same period last year, and an increase of 154.86% higher than that of 2Q2017.

The comprehensive gross profit margin decreased by 0.63 percentage points, and the expense rate decreased by 1.56 percentage points.

1-3Q2017's consolidated gross profit margin was 9.19%, down 0.63 percentage points from the same period last year.

The period expense rate of 1-3Q2017 company was 6.96%, 1.56% lower than that of the same period last year.

Among them, the rate of sales / management / financial expenses is 4.98% / 1.15% / 0.83% respectively, which is 0.21 /-0.40 /-1.37 percentage points respectively over the same period last year. Among them, the sharp decrease in financial expenses is due to the decrease in interest expenses caused by the repayment of corporate bonds.

The income side is picking up obviously, and the effect of fee control is gradually emerging.

The company's achievements in category adjustment are reflected in the revenue side, with a good year-on-year revenue growth rate in the second and third quarters. In addition, the company's cost control level has also been improved, in addition to the financial expense rate due to debt service has been greatly reduced, single-quarter sales, management expense rate has also decreased significantly.

Raise earnings forecast and maintain neutral rating

Considering the signs of a pick-up in the company's revenue side, we have raised our forecast for the company's fully diluted EPS over the next three years to 0.18 / 0.13 / 0.14 yuan (previously 0.15 / 0.12 / 0.14 yuan). However, considering the high valuation of the company, the neutral rating is maintained.

Risk hint

The growth rate of household consumption fell short of expectations, and the market recognition of new products fell short of expectations.