Event: The company released its three-quarter report for 2020. The company achieved revenue of 1,431 billion yuan in the first three quarters, an increase of 2.05% over the previous year; net profit attributable to shareholders of listed companies was 123.0207 million yuan, an increase of 47.73%; net profit after deducting non-return mother was 99.2579 million yuan, an increase of 51.88% over the previous year. 1. The rapid increase in profit was mainly due to the rapid development of the anti-drug business in the first three quarters, and the rapid increase in net profit of the mother's net profit mainly benefited from two aspects: 1) Affected by the implementation of the domestic anti-feed policy, the rapid growth of the substitute business. In the first three quarters, the anti-war business achieved revenue of 120 million yuan, an increase of more than 70% over the previous year. Among them, in the third quarter alone, alternative revenue increased by about 150% year on year. The rapid growth of the anti-rival business has demonstrated the company's core competitive advantage in the field of anti-rival research. 2) The enzyme preparation business and API business are gradually improving. In the third quarter alone, revenue from feed enzyme preparations increased by about 20% year on year, and the declining revenue trend was reversed. The main reason is that the rapid growth in production and sales volume in the downstream feed industry is driving demand for the addition of feed enzyme preparations to feed. Furthermore, prices of intermediates have rebounded steadily, and profits in the API business have rebounded. Accordingly, gross margin has risen. The main reason why revenue growth is lower than profit growth is that revenue from the animal feed vitamin business has declined compared to the same period last year, which has lowered the income level of other businesses. 2. The product and channel advantages of the alternative business are obvious. It is expected to continue to grow rapidly in the future. The core advantages of the company's rival business are mainly reflected in: 1) Product advantages. Shiwei Technology, a subsidiary of its subsidiary, owns the celebrity anti-drug product Bojiao. Currently, it is the only product in China that has received an approval number for growth-promoting Chinese veterinary drug additives. Compared with competing products, the product has achieved remarkable resistance and excellent market reputation. Previously, it sold well in Europe and achieved revenue of nearly 100 million yuan. The company combined Boyikang with other substitutes into the anti-antibody product Boyikang, which further improved its anti-inflammatory and growth-promoting effects; 2) The channel and customer advantages were obvious. The company has been deeply involved in the field of feed additives for 30 years, has accumulated rich customer resources, and can provide direct sales channels for the sale of anti-antibody products. With these two advantages, the company's alternative business will continue to grow rapidly in the future. Profit forecast: Considering that the decline in financing amounts affects financial expenses and the narrowing of other business scales, we have adjusted our 2020 performance expectations. We expect net profit of 2,24/3.05/397 million yuan in 2020/2021/2022, giving the company 35 times PE in 21 years, with a target market value of 10.6 billion yuan and maintaining a “buy” rating. Risk warning: weak implementation of national countermeasure policies, company R&D and project construction progress falling short of expectations, environmental shutdown and production restrictions, etc.