Event: On October 13, the company released its performance forecast for the first three quarters. It is expected to achieve net profit of 739 million yuan to 845 million yuan in the first three quarters, an increase of 40%-60% over the same period last year. Net profit of 245 million yuan to 350 million yuan is expected to be realized in the third quarter, an increase of 54.68% to 121.48% over the same period last year. The main reason for the increase in profit is the increase in the sales profit of the company's Coenzyme Q10, Vitamin A raw products, and nutritional health products. Coenzyme Q10: Since the second half of last year, Coenzyme Q10 has experienced many price increases. The Jindawei market accounts for more than 60%, which has greatly benefited. The gross margin of the product has been greatly increased, which has contributed to the company's profit growth. Vitamin A raw material products: According to Baichuan Yingfu, this year's epidemic has had a certain impact on the supply side of vitamin A. Vitamin prices have risen and then fallen. Currently, they have remained at a relatively stable price level. The average price since this year has been 425.9 yuan/kg, while the average price last year was 356.6 yuan/kg. Since the current overseas epidemic has not completely improved, it still has a certain impact on vitamin supply and supports prices. It is expected that the average price of VA this year will be higher than last year, and the company's VA sector profit will increase year-on-year nutritional health products: the epidemic has contributed to an increase in demand for health products, and the company's nutritional health products sales are good. Meanwhile, the new product NMN, which went on sale on July 9 this year, also achieved a good start. According to DRB's Tmall flagship store data, as of 24:00 on October 14, the sales volume of 1 bottle was 13820, and the sales volume of 1 bottle was 2,09982 million yuan; the sales volume of 2 bottles was 1490, with sales volume of 4.765 million yuan according to the transaction price of 3198; the sales volume of 3 bottles was 109, at the transaction price of 4797, the sales volume of 522,900 yuan; the sales volume of 3 gift boxes was 105, at the transaction price of 1919 50.60 million yuan. In three months, Jindawei's NMN products achieved sales of 278.921 million yuan in the Tmall flagship store. Vitamin K2 has obtained a food production license, and trial production is expected to begin in October 2020. The subsidiary Jindawei Pharmaceutical has launched a new raw material product, Vitamin K2, through a renovation and expansion project, with a design production capacity of 100 tons/year. The project has recently received approval from the Hohhot Ecological Environment Bureau of Inner Mongolia Autonomous Region on the environmental impact report of the project, and trial production is expected to begin in October 2020. Vitamin K2 promotes cardiovascular health and bone recovery, and helps prevent osteoporosis and atherosclerosis. The variety of new production licenses has enriched the company's product line, enhanced the company's business capabilities, and enhanced core competitiveness. It is expected to have a positive impact on the company's future operations. Investment suggestion: Jindawei is one of the main suppliers of vitamin A in the world. The market share of coenzyme Q10 is expected to be over 60%. Health products have the entire industry chain, and the strategy is optimistic about the development of NMN. The company will continue the dual main business model of “manufacturing and brand operation” in the future. The company's 2020-2022 EPS is expected to be 1.95, 2.31, and 2.77 yuan, and the corresponding PE is 20.9 times, 17.6 times, and 14.7 times, respectively, maintaining the “highly recommended” rating. Risk warning: Market expansion falls short of expectations, downstream demand falls short of expectations, sharp drop in product prices, large fluctuations in raw material prices, environmental protection risks, and production safety risks. NMN products account for a very low share of the company's sales and have not had a significant impact on the company's current performance. The efficacy of the company's NMN products has not been evaluated by the FDA and is not used to diagnose, treat, cure, or prevent any disease.