In the first three quarters of 2000, the company achieved operating income of 486 million yuan, an increase of 188.97% over the same period last year, mainly due to the increase in revenue from characteristic meat products and brand meat, with a net profit of 93 million yuan, an increase of 94.79% over the same period last year. In the third quarter alone, the operating income was 172 million yuan, an increase of 305% over the same period last year, and the net profit returned to the mother was 29 million yuan, an increase of 244.47% over the same period last year.
The expense rate has been improved in the third quarter alone, and the effect of fee control is obvious. In the first three quarters, the company's sales gross profit margin was 27.52%, down 16.73pct from the same period last year, and the net sales margin was 18.93%, down 9.32pct from the same period last year.
In the third quarter alone, the company's gross sales margin increased by 1.22pct to 23.54%, and net sales margin increased by 4.24% to 16.40%. On the expense side, from the third quarter, the sales expense rate decreased by 1.25pct to 5.08%, and the management expense rate decreased by 1.11pct to 1.85%.
Increasing procurement efforts is expected to smooth costs. The company's current inventory of 582 million yuan is mainly due to increased procurement efforts and an increase in raw materials at the end of the period. As of August 10, 2020, the company has a pork raw material inventory of 17300 tons, with 3950 tons on the way, totaling 21250 tons, most of which were purchased this year. The company has its own cold storage of 60,000 tons, which can match the reserve and adjustment of raw materials.
So far, the company has received a total of 149.1827 million yuan. In September 2020, the company transferred the Beijing real estate owned by Zhongyu Capital and its holding subsidiary Zhongyu Medical to the company. In October 2020, the company transferred the Chengdu real estate owned by Zhongyu Capital to the company.
Profit forecast and investment advice: the company achieved high growth in revenue and profits in the third quarter and returned to the main meat business in an all-round way. Meat product structure is gradually built, both online and offline. The company has the advantage of purchasing and is expected to smooth the cost. 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 34,19,13x 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.