The profit margin of private brand has improved significantly, and the financing business of supply chain has grown against the trend affected by the epidemic.
In the first three quarters, the net profit attributed to shareholders of listed companies was 150 million yuan, an increase of 26.26% over the same period last year. Q3 realized a net profit of 90.119 million yuan belonging to shareholders of listed companies in a single quarter, an increase of 125.76% over the same period last year. The performance in the third quarter basically returned to the level of the same period last year, and the operating efficiency gradually rebounded. The epidemic has led to an increase in the number of homes, which is good for the "home service" market. with the help of the new retail marketing model, the company carries out publicity and product promotion. The profit margins of the "Golden three Pagoda" and "Nita" brands have improved significantly this year, with turnover growth of 23% in January-September and more than 40% in August and September compared with the same period last year. Affected by the epidemic in the first half of the year, the turnover rate of enterprises in the cocoon and silk industry decreased, the demand for funds increased, and the company's supply chain financing business grew against the trend, which led to the improvement of the performance of Golden Silkworm net Company.
The new material, Bombyx mori, spiders, super bionic silk, has achieved initial results. In the field of silk science and technology, the research and development of new materials has achieved initial results. the super silk technology invested by the company mainly researches and develops super bionic silk of silkworm spiders, and the genetic combination of silkworm and black widow spiders has improved the performance of domestic silkworm. At present, a breakthrough has been made in technology. The strength of the cultivated silk is 3.86 times stronger than ordinary silk, reaching the international advanced level. It can be used in military products (bulletproof vest, parachute, fish interception, etc.) and biomedical products (artificial tendons, ligaments, heart valves, tissue repair, etc.). At present, we start from the application of clothing materials, and gradually move towards the market.
Cross-industry development enhances performance flexibility. The company invested in Lent Optics was listed in the Science and Technology Innovation Edition in September 2020; through the technology accumulation in the past few years, the core technology invested by the company has the whole industry chain of chip design, R & D and manufacturing, with the main R & D direction for MEMS sensors, products located in high-end industries, and has achieved small batch production.
Profit forecast and investment rating: in the short term, the company's income and profit growth mainly comes from the upgrading of consumption to open the cocoon and silk market, but in the long run, new materials and semiconductors invested abroad have certain growth potential. Taking into account the advantages of the company in the cocoon and silk industry in terms of the whole industry chain, full category, brand awareness and technology, the profit forecast for 2020 / 2021 / 2022 is 0.30 EPS 0.34 shock 0.42 yuan, and the corresponding PE is 25.76 shock 22.71 shock 18.60 times, maintaining the "buy" rating.
Risk tips: the research and development and promotion of new materials are not as expected; the progress of the company's semiconductor business is not as expected; the company's main business is not as expected; raw material costs are rising faster than expected; trade frictions and so on.