Event description

The company's net profit attributable to shareholders of listed companies is expected to be 90 million yuan to 95 million yuan in the first quarter of 2017, compared with 32.02 million yuan in the same period last year, a big increase over the same period last year.

A view different from that of the market

1, the business focuses on two major sectors, and new developments have been ushered in in the past 17 years: the main reason for the better-than-expected performance in the first quarter of 17 is that the company has gradually focused its business since 16 years and completed the sale of shares in its real estate business subsidiaries, reducing the drag on performance. The company's future business is mainly focused on grain logistics, warehousing and transportation and traditional food and beverage based on soybeans. Other businesses that have diversified in the past are expected to gradually dilute the divestiture. The focus of the strategic direction led to the growth of soy milk powder business and grain collection and storage business revenue in the first quarter, which greatly improved the company's profitability compared with the same period last year.

2, the brand foundation is deep, the strength liquid soy milk business: Weiwei soy milk has been a household name in the 1990s, the solid beverage annual sales is about 1.5 billion yuan, the profit is more stable. In the past, liquid vegetable protein drinks only went through food and beverage channels in some provinces, and did not take the initiative. The company has launched a new soy milk product in canned soy milk this year, which is targeted at children and young people in their 20s. It has begun to attract investment nationwide, with a sales target of 600 million yuan in 17 years, a sales revenue of 4 billion yuan and a gross profit margin target of more than 30 percent in five years.

3, grain business starts, warehousing and logistics transportation occupies a geographical advantage: the company is located in Xuzhou, the junction of the four provinces, and are major grain-producing provinces, developed transportation, but also close to the main grain consumption areas. The company, formerly a subsidiary of the Grain Bureau, has professional management personnel for grain acquisition, warehousing, logistics and other businesses. At present, the company has a grain storage capacity of 1.4 million tons, and it is expected to increase the storage scale of 1 million tons per year in 17-18 years. Together with the leased warehousing, the long-term annual grain circulation and throughput are planned to reach 10 million tons. Some of them participate in the temporary reserves of national policies to earn subsidized income, while the other part is used as commercial reserves. In the long run, the trade volume corresponding to the throughput of 10 million tons will reach 30 billion, and the gross profit contribution is expected to reach 600 million.

4. Investment rating and valuation: the two major business sectors of the company have a lot of room for development in the future. the main business focus has opened a new chapter for the development of the company, and the follow-up actions are worthy of attention. We estimate that the EPS of the company from 2017 to 2019 will be 0.25,0.30 and 0.34 yuan respectively, giving a "recommended" rating for the first time.

5. Risk hint: the promotion of plant protein beverage is not as expected, and the risk of grain storage policy.