April 27th, Friday night.
Shunxin Agriculture's first quarter report was quietly released after the market closed.
Chen Xi was having dinner at home when he received the notification push.
She put down her chopsticks and clicked on the announcement. The numbers on the screen made her stop chewing.
She watched it three times from beginning to end.
April 28, Saturday.
May Day takes the day off and Shan City goes to work as usual.
As soon as Zhao Chen entered the office, Chen Xi knocked on the door and came in.
She held a printed Shunxin Agriculture first quarter report in her hand, and Su Wantang followed behind, holding a cup of freshly brewed Longjing.
"The first quarter reports of Zhao Zong and Shunxin Agriculture came out last night."
Chen Xi put the briefing on Zhao Chen's desk, "The data is very eye-catching."
Zhao Chen sat down and picked up the cup of Longjing without drinking it, waiting for Chen Xi to continue talking.
Chen Xi opened the briefing and his voice was a little faster than usual.
"In the first quarter of 2018, Shunxin Agriculture achieved operating income of 3.973 billion yuan, a year-on-year increase of 3.37%;
The net profit attributable to Listed Company shareholders was 366 million yuan, a year-on-year increase of 94.61%; the non-net profit after deduction was a year-on-year increase of 94.80%.
Basic earnings per share were 0.64 yuan."
Zhao Chen's fingers paused on the table for a moment.
Revenue increased slightly by 3.37%, but net profit increased by nearly 95%.
This Scissors Gap shows that the company's internal structure has undergone qualitative changes.
He picked up the tea cup and took a sip without saying anything.
Chen Xi Turn over the page and continue reporting.
"The growth rate of net profit is much higher than the growth rate of revenue. There are two main reasons.
First, Baijiu's revenue share has increased significantly.
In the first quarter, the sales revenue of the Baijiu segment reached 3.2 billion yuan, accounting for about 80% of the company's main business revenue.
This proportion was less than 55% during the same period last year."
She opened the dog-eared page of the briefing sheet and pointed to the numbers on it.
"Second, the expense ratio has dropped significantly.
The sales expense ratio in the first quarter was 9.20%, a year-on-year decrease of 4.19 percentage points.
The administrative expense rate was 6.44%, a decrease of 0.61 percentage points.
The financial expense rate was 1.03%, a decrease of 0.13 percentage points.
The total of the three fees dropped by nearly 5 percentage points.
At the same time, the overall Gross Margin increased by 4.94 percentage points year-on-year to 43.15%."
After finishing speaking, she added:
"The low-margin construction business was divested at the end of October last year, and pig prices fell 23% year-on-year in the first quarter, so the overall revenue growth does not look high.
But the actual growth rate of Baijiu's business far exceeds the report data."
Chen Xi continued:
"Brokerage firms estimate that Baijiu's revenue grew at a year-on-year rate of over 40% in the first quarter.
Dongxing Securities's research report used the term 'largely exceeded market expectations'.
BOCI's research report said that Baijiu's revenue growth rate has accelerated significantly to more than 40%, the report reservoir is sufficient, and the advance collection/income is the highest among Baijiu Listed Company."
Zhao Chen put down the tea cup and turned to the third page of the briefing.
The column of advance receipts reads: At the end of the first quarter, advance receipts were 3.701 billion yuan, a year-on-year increase of 54.03%.
Among them, the parent company's advance receipts (basically Baijiu advance receipts) were 3.13 billion yuan, a year-on-year increase of 1.2 billion yuan.
"Advance receipts of 3.7 billion."
Zhao Chen's voice is very calm,
"This is equivalent to more than 30% of last year's full-year revenue. This money has been paid into the company's account, but it has not yet been recognized as revenue.
The performance of the first quarter report has exceeded expectations, but the water in the reservoir is still full."
Chen Xi said:
"The net cash flow generated from operating activities in the first quarter was 874 million yuan, a year-on-year increase of 34%.
Baijiu continues to contribute net cash flow, and the company's hematopoietic ability is very strong.
Moreover, at the end of the first quarter, the company's monetary funds remained at a high level of 4.9 billion yuan, which Cash Reserves is very sufficient."
Zhao Chen leaned on the back of the chair and tapped his fingers on the table twice.
He remembered that more than a month ago, when Cheng Jiaxun mentioned Shunxin Agriculture and Animal Husbandry on the phone, he just said it casually.
He asked Chen Xi to check, and the information Chen Xi checked made him realize that this was not an ordinary "Baijiu+pork" company.
It is harvesting the hidden champion across the country in the low-end Baijiu market.
A bottle of Erguotou, which costs more than ten yuan, has sold nearly 10 billion yuan a year.
The current quarterly report data proves his judgment.
"Chen Xi, you just said that the brokerage estimated that Baijiu's revenue growth rate is more than 40%. Do you have a more specific breakdown?" Zhao Chen asked.
Chen Xi turned to the next few pages of the briefing, which was a summary of the brokerage opinions she compiled last night.
"A research report by Dongxing Securities said that the main reason for the substantial increase in performance is that starting from the second half of 2017,
Erguotou Baijiu quickly occupied the low-end market across the country with its high cost performance, and the low-end Baijiu ushered in a 20% volume growth.
At the end of 2017, the parent company's advance receipts increased significantly, from 1.737 billion to 3.287 billion, leaving ample room for performance growth in the first quarter."
She turned to the next page and spoke faster.
"BOCI's research report believes that 1Q18 revenue increased by 3.4%, and it is estimated that Baijiu's revenue growth has accelerated significantly to more than 40%.
The overall revenue growth is not fast mainly due to the divestiture of the construction business and the decline in pig prices.
In 2018, the company continued to promote terminal construction, and Spring Festival sales maintained rapid growth, continuing the high growth trend in the second half of 2017.
The report's reservoir is sufficient, and the advance collection/income is the highest among Baijiu Listed Company."
Chen Xi Continue turning the page.
"Guosen Securities's research report directly states - '18Q1 Niulanshan continues to maintain high growth, and the company has reached an inflection point.'
There are also some data: in 1Q18, advances from customers were 3.701 billion yuan, a year-on-year increase of 54.03%; operating income plus changes in advances from customers increased by 22.9% year-on-year.
Inventory is 1.233 billion yuan, a year-on-year decrease of 566 million yuan, showing the company's trend of high turnover development."
Zhao Chen picked up the tea cup and took a sip. The tea was already a little cold.
He put down the cup, stood up, and walked to the window.
The April sunshine shines through the clouds and shines on the river in the distance, like broken gold.
"Chen Xi," he didn't look back, "Do you know what this quarterly report means?"
Chen Xi said nothing.
Zhao Chen turned around and looked at her.
"This means that our overseas investment in the later period will be unimpeded.
This means that the doubts of Board of Directors will gradually disappear.
It means that Minor Shareholder no longer continues to question the foundation of the management."
Zhao Chen Because of the program constraints of Board of Directors and Minor Shareholder, the frustration of being unable to make big investments has been eliminated.
No one can question his judgment on the real estate business, because this is the prestige earned through countless correct decisions.
However, when it comes to investing in himself, he has yet to prove himself.
Shunxin Agriculture will be his first successful case to achieve the investment myth.
He walked back to his seat, sat down, and turned to the last page of the briefing.
On that page, Chen Xi compiled the brokerage's outlook for Shunxin Agriculture's follow-up.