Event: the company released its three-quarter report in 2017, with sales revenue of 2.323 billion yuan in the first three quarters, an increase of 6.55% over the same period last year, and net profit of 77.68 million yuan, a substantial increase of 144.02% over the same period last year. The net profit after deducting 48.66 million yuan was 608.11% higher than that of the same period last year. The company expects the net profit of returning home in 2017 to be 0.9-110 million yuan, an increase of 13.07% and 38.20% over the same period last year.
Marine pasture resources return to normal, downstream sales channels continue to expand. The overall prosperity of aquatic products rebounded slightly in the first three quarters of this year, and the company has strengthened the research and control of marine eco-environmental risks in recent years. Marine pastures have recovered well and the supply of sea treasures has increased steadily. The cooperation effect of the mode of the combination of aquatic processing and trade is good, and the orders of the processing enterprises in the supply chain platform are sufficient. The overall layout of the downstream food sales market, the accurate counterpoint wholesale circulation market for the sale of live aquatic products, and more than 4000 snack monopoly terminals have been continuously optimized and deepened in cooperation with Tmall, JD.com and other e-commerce platforms.
Business improvement has achieved initial results, the expense rate has decreased compared with the same period last year, and the gross profit margin and net profit margin have increased compared with the same period last year. In the first three quarters of 17 years, the company's sales gross profit margin was 17.67%, up 2.24% from the same period last year, and the net sales margin was 3.22%, up 1.92% from the same period last year. The company's operation and management improved, and the expense rate decreased compared with the same period last year, of which sales expenses were 125 million yuan, accounting for 5.39% of operating income, down 0.27% from the same period last year; management expenses were 105 million yuan, accounting for 4.53% of operating income, down 1.35% from the same period last year; financial expenses were 116 million yuan, accounting for 5.03% of operating income, up 0.38% from the same period last year. The company's non-operating income was 33.23 million yuan, down 34.11% from the same period last year, mainly due to the decrease in wind index insurance claims income.
The development and release of food side will be accelerated, and the performance is expected to increase steadily in the next two years. Relying on the unique marine pasture resources, the company actively develops downstream food R & D and sales channels, and transforms from food materials enterprises to food enterprises. (1) the Food Research and Development Company set up the Marine Food Innovation Research Institute, which developed 30 new products in the first half of the year, of which 15 new products, such as abalone and clam series, were successfully listed, providing the company with a large amount of R & D reserves. (2) the food sales end company continuously enhances the brand influence by making use of the omni-channel advantages and marketing functions such as specialty stores, snack food, circulation and e-commerce, and carries out in-depth strategic cooperation with retail channels such as good products. The continuous deepening of brand strength and channel power will help to continuously increase the company's sales performance. We estimate that the net profit of the company in 2017 and 2018 will be 1.06 yuan and 260 million yuan, respectively, and the EPS will be 0.15 yuan and 0.37 yuan respectively. We will give 30XPE in 2018 with a target price of 11.1 yuan, maintaining the "overweight" rating.
Risk hints: the fluctuation risk of aquatic product prices; the uncertainty of marine natural conditions
