Events:

According to the semi-annual report, the company realized operating income of 463 million yuan in the first half of the year, an increase of 20.91% over the same period last year, and a net profit of 48.45 million yuan, an increase of 32.83% over the same period last year.

The disposal of the equity transfer proceeds of Honda and Haikou Jiayue is the main reason for the company's performance growth.

During the reporting period, the company's main business and business model changed greatly. The company's main business income was mainly from the coal and logistics industry, and the profit source was mainly from the motorcycle industry. With the increase in the proportion of beef food industry during the reporting period, at present, the company's main business income is mainly coal, logistics, beef food industry. In the first half of the year, the divestiture of the motorcycle industry and the transfer of shares in Haikou Jiayue were completed, with a disposal income of 129 million yuan, which constitutes the main reason for the company's performance growth.

Large-scale entry into the beef industry, the rise of beef supply chain service providers!

In the first half of the year, the volume of beef domestic sales and imports increased significantly. Among them, Shanghai Hengyang achieved a cumulative trade sales income of 88.15 million yuan, with a net profit of 357200 yuan due to high market expansion expenses, while Ningbo Hengyang realized a cumulative sales income of 18.83 million yuan and a net profit of 776900 yuan. At present, the company has completed the acquisition of Uruguay Lorsinal S.A., the first overseas beef company. Delivery of 50% of the company's stake and proposed acquisition of Lirtix S.A. For $82.3 million. And Rondatel S.A. 100% equity in the company. Upon completion of the transaction, the company will adopt Lirtix S.A. In South America (a supplier of high quality beef and mutton). And Rondatel S.A. Purchase high quality beef resources directly from the local area. Superimposed company in the domestic layout of the trade, processing, sales platform, as well as the acquisition of Lorsinal company, the company has set up a "overseas quality resources + domestic market" beef supply industry platform, in the future the company will continue to promote the acquisition of Hengyang cattle industry, further strengthen the company's layout in the beef industry, beef supply chain service providers are rising!

Consumption upgrading to promote the development of imported beef industry opportunities, the company's beef business performance is expected to high growth!

Consumption upgrading promotes the rapid growth of beef consumption demand. due to the limitations of domestic resources and varieties, domestic beef is difficult to meet the rapidly growing domestic beef consumption demand. Beef imports have increased rapidly in recent years, and imports are expected to reach 950000 tons in 2017. the growth rate is 17%. Under the background that the upgrading of domestic consumption promotes the high growth of beef demand, the foreign beef import industry ushered in a good opportunity for development! At present, the company has acquired 50% stake in Lorsinal, and in the second half of the year, it is expected to complete the acquisition of the assets of the cattle industry in Uruguay and Argentina, and to form coordination with the beef trade and processing business of listed companies, and the performance is expected to break out. It is expected that in 17-19 years, without considering the follow-up overall acquisition of Hengyang cattle, the company's cattle industry profit will reach 0.47pm 155ap295 million yuan, which will become the core driving force of the company's future performance growth!

Give a "buy" rating:

Taking into account the consolidated list of assets acquired this year, it is estimated that in 2018 and 2019, the net profit of the company will be 1.84 million yuan, an increase of 459.07%, 70.51%, 41.70%, 0.23, 0.38, and 0.55, respectively, and the target price will be 11.4 yuan in 18 years.

Risk tips: 1, coal prices fluctuate sharply; 2, future acquisitions are not as expected.