occurrences
The company released its annual report, achieving revenue of 3,052 million yuan, an increase of 11.93% over the previous year; achieved net profit of 79.59 million yuan, with a loss of 243 million yuan in the same period last year; and realized net profit of 27.87 million yuan after deduction to the mother, with a loss of 491 million yuan in the same period last year. At the same time, the company released a performance forecast for the first quarter, with an expected profit of 1 to 10 million yuan, compared with a loss of 9.2307 million yuan for the same period last year.
Improved profits and lower costs in shrimp and scallops and sea cucumber farming were the main reasons for the company's sharp loss reversal.
The gross margin of the company's shrimp and scallops increased 5.79% over the previous year, and the gross margin of sea cucumber increased 17.66% from the previous year. Together, the two contributed about an increase of about 80 million yuan in gross profit. Furthermore, the company's expenses dropped sharply, and the total cost of the three items decreased by 101 million yuan, which constituted the main source of the company's profit increase. In addition, asset impairment losses were reduced by 44 million yuan, and investment income increased by 0.5 billion yuan, further increasing the company's profits.
Farming has shifted from a heavy scale to a focus on efficiency, and an increase in farming yield is expected to drive steady profit growth!
The company divested 790,000 mu of unsuitable sea area for planting and did it according to the “raise for three years, idle for one year” method, and the yield of aquaculture is expected to increase steadily. It is expected that the company's yield of shrimp and scallops will reach more than 40 kg per mu in '17. In the long run, the company's yield of shrimp and scallops is expected to rise to 60 kg (the company reached more than 100 kg at its peak, and Japan is currently over 100 kg). The continuous increase in farming yield is the core driving force for the company's performance growth.
The transformation of food companies to food companies: strengthen product innovation, expand B-side and KA channels, and promote profit growth!
On the product side, it developed into semi-finished products, condiments, ready-to-eat products, etc. In 2016, the company developed 70 products, of which 33 were put on the market. On the channel side, the company focuses on channel layout with restaurants, industrial consumption, and KA as the main focus, and has begun to build its own brand. Snack foods have already entered 2,000 stores. Through product innovation and channel expansion, the gross margin of the company's processing business is expected to continue to increase, becoming an important driving force for the company's performance growth!
The company is expected to integrate local aquaculture resources in Changhai County, with a broad market capitalization space!
The Changhai County Government and the company all hope to promote the integration of local resources and improve farming efficiency through rational farming rotation. As the only listed company in the local aquaculture field, the company is likely to become a platform for the Changhai County Government to promote the integration of local aquaculture resources in the future. The company's future aquaculture area is expected to increase dramatically as a result, and the market capitalization space is vast!
Farming has shifted from a heavy scale to a focus on efficiency, and an increase in farming yield is expected to drive steady profit growth!
The company's farming improvements and product channel development will effectively enhance the company's profitability. The company's performance ushered in a period of rapid growth. The company's net profit for 2017/2018/2019 is expected to be 2.51/4.49/626 million yuan, and EPS is 0.35/0.63/0.88 yuan, giving a 25-fold valuation of 18 years, with a target price of 16 yuan.
Risk warning: 1. Farming risk; 2. Product prices fluctuate greatly.
