The company disclosed its report for the third quarter of 2022. The first three quarters of 2022 achieved cumulative revenue of 5.312 billion yuan, an increase of 32.80% over the previous year; achieved net profit of 241 million yuan, an increase of 187.26% over the previous year; realized net profit of 238 million yuan after deduction, an increase of 211.96% over the previous year; of these, the third quarter achieved operating income of 2,001 million yuan, an increase of 27.46% over the previous year; achieved net profit of 908.081 million yuan, an increase of 293.92% over the previous year; net profit of Fumo was 906.16 million yuan, an increase of 329.2% over the previous year.
The number of eels released from the pond has been released, and the results have continued to be realized. The eel farming business achieved revenue of 494 million yuan in the first three quarters, accounting for 24.69% of the company's total revenue in the first three quarters, with a cumulative sales volume of 5819.35 tons. The company continued to lay out the eel business for many years. In the third quarter, production capacity was gradually released on the basis of producing fish at an established strategic pace. The business throughout the industry chain continued to maintain a high level of prosperity, and profitability continued to increase. The fourth quarter was influenced by the holiday season, demand for eel was strong, and the performance of eel farming is expected to continue to be realized.
The volume and price of feed have been growing steadily. Feed product sales in the first three quarters achieved revenue of 4.468 billion yuan, an increase of 23.90% over the previous year; of these, special water feed revenue accounted for 32.11%, with cumulative sales of 155,400 tons, an increase of 21.25%; livestock and poultry feed revenue accounted for 67.89%, with cumulative sales volume of 901,400 tons, an increase of 16.82% over the previous year. In an environment where the weather is hot, downstream feeding is poor, and raw material prices are clearly rising, the company has maintained steady growth through R&D innovation and technological advantages of feed varieties. With the rapid development of China's specialty aquaculture feed industry, the company's leading position is expected to continue to rise, and it is worth looking forward to a sharp rise in volume and price in the future.
Extend the industrial chain and expand diversification. In terms of grilled eel food, the company's cumulative revenue in the first three quarters was 218 million yuan, an increase of 5.22% over the previous year. The number of grilled eel sold 1259.40 tons, a year-on-year decrease of 22.56%. Due to the end of peak consumption seasons such as Japan's eel festival in the third quarter, product prices have all declined, and demand in the Japanese market is expected to be stable in the future. In addition to the Japanese market, the company's grilled eel export business is gradually expanding channels, making efforts to emerging markets such as the United States, Russia, Europe, and Southeast Asia to promote diversification of the grilled eel business.
We maintain our original forecast. The company's net profit for 2022-2024 is estimated to be 338, 691, and 889 million yuan, up 304.1%, 104.8%, and 28.6% year-on-year. EPS is 0.77, 1.59, and 2.04 yuan respectively. According to the valuation level of comparable companies, maintain the company's 15xPE in '23, with a target price of 23.78 yuan, and maintain the “buy” rating.
Risk warning: risk of fluctuations in raw material prices, risk of supply of eel seedlings, risk of fluctuations in eel production and prices, food safety risks