1H20 achieved an annual operating income of 314 million yuan, an increase of 149.68% over the same period last year, and a net profit of 64 million yuan, an increase of 63.21% over the same period last year. 2Q20 achieved an annual operating income of 123 million yuan, an increase of 286.76% over the same period last year. The net profit of homing was 15 million yuan, an increase of 106.02% over the same period last year. The scope of business continues to expand, from the traditional ham business to the major rivers of the meat industry, constantly increasing product categories and building a more complete product system. 1H20 annual performance sub-products: 1. Revenue from ham was 74 million yuan, up 23.68% from the same period last year; revenue from ham products was 3 million yuan, up 1.07% from the same period last year; revenue from specialty meat products was 64 million yuan, up 20.25% from the same period last year; revenue from brand meat was 160 million yuan, up 51.03% from the same period last year; cold chain service was 9.7 million yuan, up 3.10% from the same period last year. Brand meat and conditioning meat is the company's new business, 1H20 year the company continues to put on the shelves of new plant meat products and conditioning meat products, building a more perfect product system. In 1H20, the company's gross profit margin declined, with a gross profit margin of 29.71%, mainly due to the increase in revenue from specialty meat products and brand meat.
The company has increased its procurement efforts to further consolidate the cost advantage of raw materials. As of April 22, 2020, the company's pork raw material inventory and on the way a total of 19285 tons. As of August 10, 2020, the company's pork raw material inventory of 17300 tons, on the way 3950 tons, a total of 21250 tons. Compared with April, it has increased by 1965 tons, and the procurement efforts have been continuously increased. According to the latest data, from July 27 to August 2, the average purchase price of pigs in designated pig slaughtering enterprises across the country was 37.46 yuan / kg, up 0.4 percent from the previous month and 94.3 percent from the same period last year. The average ex-factory price of white striped meat was 47.79 yuan / kg, up 0.4% from the previous month and 94.1% from the same period last year. With the rise of pig prices, the company's cost advantage is further magnified, forming a virtuous and positive cycle.
The withdrawal of Zhongyu Capital has been gradually promoted, increasing the certainty of performance. In the past 18 years, the company has agreed that Loudi Zhongyu, Yu Bo, Ma Xianming, Jin Tao, Wang Boyu and Wang Hui will buy back 51.00% of the shares held by Zhongyu Capital in cash. Zhongyu Capital, as a joint buyback, also undertakes this buyback obligation. As of August 10, the company has received a total of 86.05 million yuan in equity repurchase funds paid by the other party of the transaction.
Online sales are growing rapidly, and the channels are improved and unified in parallel. The company spares no effort to develop network sales and actively explore new channels such as fresh e-commerce, community e-commerce, content e-commerce and live broadcast of network celebrities to expand the user base. In the year of 1H20, the company promotes interaction with users, creates fan festivals, improves users' stickiness and repeated consumption, maintains the joint efforts of head and waist anchors, and realizes the rapid growth of business. Jinhua Golden word Ham Co., Ltd., the holding subsidiary of Jinhua Golden word Ham Co., Ltd., plans to set up a wholly-owned subsidiary, Meat Master Electronic Commerce Co., Ltd. (tentative name) in Jinhua, with a registered capital of 50 million yuan. Focus on expanding the sales of pork, beef, conditioning meat products and other meat products, with a view to improving the company's performance.
Profit forecast and investment advice: the company fully returns to the main business and focuses on the development of meat products. The category of meat products has been gradually enriched and the product structure has been gradually improved. We expect that the company will enter a period of rapid development in recent years, with revenue of 7.7,12.8 and 1.82 billion yuan, net profit of 1.8,3.2 and 460 million yuan, EPS of 0.18,0.33,0.47 yuan respectively, and corresponding PE of 41,23,16X respectively.
Risk tips: trade frictions, pork purchase prices fluctuate greatly, sales of new products are not as expected, the speed of channel development slows down and the number of development is less than expected, asset impairment losses, the uncertain impact of the epidemic, food safety issues and so on.