Event: according to the company's semi-annual report for 2022, 22H1 realized operating income of 4.624 billion yuan, down 5.07% from the same period last year; corresponding to 22Q2 realized operating income of 2.27 billion yuan, down 13.24% from the same period last year and 3.54% from the previous year; net profit from home was 233 million yuan, down 29.51% from the same period last year; net profit from 22Q2 was 111 million yuan, down 46.05% from the same period last year; and 8.38% from the previous year The net profit of non-return was 230 million yuan, down 29.65% from the same period last year, while that of 22Q2 was 115 million yuan, down 44. 03% from the same period last year and 0.8% from the previous year.

Aluminum-plastic film: the downstream demand is strong, and the volume and price of aluminum-plastic film products are rising. During the reporting period, the company's operating income from aluminum and plastic film products was about 300 million yuan, an increase of about 63% over the same period last year. Among them, thanks to the steady increase in the company's aluminum-plastic film production capacity and strong downstream demand, aluminum-plastic film sales reached 18.01 million square meters, an increase of 72% over the same period last year, corresponding to 22Q2 aluminum-plastic film sales of 9.25 million square meters, with an average monthly sales of more than 3 million square meters for the first time. At the same time, the price transmission of aluminum-plastic film products is smooth. Under the background of rising raw material prices, the product price increased by 4.5% compared with the same period last year, reaching 16.7 yuan / ping. On the basis of maintaining high profitability, it still maintains a significant price advantage over similar products.

Considering the pilot production of the Maanshan project, the orderly progress of the Zizhu project and the steady improvement of downstream demand, the company's annual sales of aluminum and plastic film are expected to reach 49 million square meters.

The traditional packaging business has suffered a lot, and the company has kept a low profile and gradually got rid of the impact of the epidemic. During the reporting period, the company's paper packaging business epidemic control is good, outstanding performance. The operating income reached nearly 900 million yuan, an increase of 9% over the same period last year; sales reached 454 million flat, an increase of 9% over the same period last year, and the ratio of production and sales exceeded 100%. After getting rid of the price pressure of raw materials, profitability improved compared with the same period last year. Demand in the beverage industry has declined, and sales of the company's beverage packaging business have declined due to the epidemic in Shanghai. 22Q2, on the basis of active epidemic prevention, carry out energy saving and consumption reduction transformation, lean management, inventory management, strengthen standardization, stabilize the market and orders in the second half of the year, and open up new growth points at the same time. To sum up, the fundamentals of the company's traditional business are stable and improving, 22Q3 is the peak season of the industry, it is expected that the company's management and sales will gradually get rid of the impact of the epidemic, and the annual operating income of the packaging business is still expected to achieve year-on-year growth.

Profit forecast and investment advice. It is estimated that the EPS from 2022 to 2024 will be 0.41,0.54,0.69 yuan respectively, and the compound growth rate of return net profit in the next three years will be 28%. Considering that the company's traditional business is expected to repair quickly, aluminum and plastic film business production and sales are booming, maintaining the "buy" rating.

Risk hints: the risk of raw material price change, the risk of seasonal impact of food and beverage industry, the risk of market development of new products, the risk of policy change of packaging industry, the risk that sales of aluminum and plastic film products are not as expected.