The income in the first three quarters was 1.496 billion yuan, + 27.18% compared with the same period last year, and the net profit was 91 million yuan, + 50.06% from the same period last year.
Black Sesame released its three-quarter quarterly report on October 26th. The operating income in the first three quarters was 1.496 billion yuan, an increase of 27.18% over the same period last year. In the first three quarters, the net profit attributed to the parent company was 91 million yuan, an increase of 50.06%. In the first three quarters, the net profit was deducted from the non-parent company by 87 million yuan, an increase of 38.10% over the same period last year, and an increase of 26.78%. Q3 realized a net profit of 63 million yuan belonging to the parent company in a single quarter, an increase of 61.34% over the same period last year. The company's performance in the first three quarters is basically in line with our previous expectations.
The inventory pressure of paste products has been released after 16Q4, returning to the growth track in 17 years.
The company 15Q4 synchronized Zhejiang Satellite TV's "Journey to the West" column customized commemorative version products in 16Q4 and inventory pressure, the company invested resources to digest the inventory, resulting in a sharp drop in gross profit margin from 30.57% in 16-year quarterly report to 23.33% in 16-year annual report. We believe that the inventory problem of paste products has been comprehensively dealt with in 16Q4, which made the company's main paste products light and back on the growth track in 2017. The company's continued decline in inventory levels also confirmed this judgment, with inventories falling to 280 million yuan at the end of the third quarter, down 15 per cent from 330 million yuan at the end of the second quarter.
Waiting for the promotion of the acquisition of Lido.
Lido's main business is to provide e-commerce distribution services to brands and operate self-online sales platform. at present, it has online agency rights for domestic and foreign food brands, including Guangming, Mengniu, Ferrero and so on. In 2016, Liduo's income reached 597 million yuan, an increase of 213% over the same period last year, and net profit reached 33.34 million yuan, an increase of 209% over the same period last year. According to the earnings forecast, the valuation level of the transaction is dynamic PS ≈ 0.6 and dynamic PE ≈ 10. With the performance commitment clause attached to this transaction, the return net profit of Lido from 2017 to 2019 is not less than 60 million yuan, 75 million yuan and 90 million yuan respectively. Under the assumption that the performance commitment can be realized smoothly, the company's performance flexibility will be significantly enhanced. The company received the CSRC's first feedback on this major issue on October 10 and is still in progress.
Launch an equity incentive plan to further strengthen team cohesion
The company launched an equity incentive scheme for a core team of 94 people, including the president and vice chairman, and intends to grant 20 million stock options to the incentive target, accounting for about 3.1367% of the company's total share capital when the incentive plan was signed. Among them, the exercise price granted for the first time is 8.03 yuan per share (the average trading price of the company's shares in one trading day before the announcement of the incentive plan). Since 2017, the four consecutive annual performance evaluation targets are required to deduct non-net profits of 250 million yuan, 275 million yuan, 300 million yuan and 330 million yuan, respectively. We believe that this round of equity incentive scheme will further strengthen the cohesion of the management and technical core team.
The main business will return to growth, waiting for the promotion of fixed growth projects and maintaining the "buy" rating.
Black sesame has an obvious leading position in paste products, returning to the track of growth after 16 years of destocking. Lido will help the company improve the efficiency of new product promotion at the channel level in the future. Maintain our previous profit forecast, EPS for 2017-2019 is 0.32 yuan, 0.38 yuan and 0.41 yuan respectively. Maintain the target price range of 10.85 yuan to 11.78 yuan, maintain the "buy" rating.
Risk tips: the demand for paste products is not up to expectations; the promotion of fixed-increase projects is not up to expectations; food safety.
