Three quarters. The company's 20Q3 realized operating income, net profit attributable to parent shareholders and net profit attributable to non-parent shareholders were 913 million yuan, 102 million yuan and 77 million yuan respectively, representing year-on-year changes of 8.48%, 21.01% and-2.54%, respectively. The operating income, net profit of shareholders vested in the parent company and net profit of shareholders vested in the parent company of 20Q1-3 were 2.23 billion yuan, 230 million yuan and 194 million yuan respectively, with year-on-year changes of-4.05%, 1.5% and-2.16% respectively.
The net cash flow generated by operating activities continued to improve, and the expense rate increased. The net cash flow generated by the company's 20Q1-3 business activities was 514 million yuan, an increase of 254.17% over the same period last year, mainly due to the maturity and encashment of notes receivable and the use of notes payable. The overall expense rate of 20Q3 increased year-on-year, with sales expense rate, management expense rate, R & D expense ratio and financial expense rate being 9.96%, 6.27%, 4.43% and 1.69% respectively, up 0.35%, 0.75%, 0.38% and 1.06% respectively over the same period last year.
The increase has been over for a while. The company revised the Dingzeng plan in August, and the issuing object was modified to three specific targets, Wang Huiwen, Wang Yanqing and Wang Yanwei, who were related parties of the company, with a total fund-raising amount of 85 million yuan and an issue price of 8.20 yuan per share. In September, the application for non-public offering of shares was approved by the Development and Review Commission of the Securities Regulatory Commission.
It is optimistic that the company's revenue will accelerate in the future. We believe that the bathroom is a relatively special category of consumer building materials, especially in the two dimensions of strong consumption attributes and high barriers. In the long run, we think that sanitary ware is a good industry, first, intelligent and integrated to extend the industry boundary; second, reference to mobile phones, household appliances and other categories, domestic status will continue to strengthen in the long run; third, the industry is still scattered to provide soil for leading development. At the same time, positive changes have taken place in the company. The retail side has increased brand building, was selected as a big brand, and became one of the three enterprises visited by Premier Li Keqiang at the opening ceremony of the 127th Canton Fair. The project side has signed cooperation agreements with R & F Real Estate, Poly Real Estate, Wanda Group, Chuang Chuang Real Estate and so on. At the same time, in terms of management, the company launched the talent planning strategy in June 20. We believe that the company's brand, channel and management are optimized. In the future, the bathroom track is expected to grow into an industry leader, and revenue will accelerate in the future.
Profitability and valuation. We estimate that the EPS of the company from 2020 to 2022 is 0.82,1.12,1.52 yuan per share respectively. 1) PE: the median forecast PE of comparable listed companies in 2020 is 28.7 times, giving the company 25-30 times forecast PE in 2020, corresponding to the reasonable value range of 20.50-24.60 yuan per share in 2020; 2) PS: the median forecast PS of comparable listed companies in 2020 is 3.2 times, giving companies 2.5-3.0 times forecast PS in 2020, corresponding to the reasonable value range of 22.07-26.49 yuan per share. Combined with the two valuation methods, corresponding to the 2020 reasonable value range of 21.29-25.55 yuan per share, "better than the market" rating.
Risk hint. The epidemic greatly slowed down the demand, and the progress of entering the real estate collection system was not as good as expected.