According to the GLONGHUI July 5, Huaxin Securities research report on the 4th, British Union Co., Ltd. (002846.SZ) achieved revenue of 420 million yuan/YoY -6.5% in 2023Q1 and achieved net profit of 040 million yuan. The loss margin narrowed somewhat over the same period last month. Demand in the domestic consumer industry is still in the early stages of recovery in 2023Q1, resulting in a year-on-year decline in the company's revenue. In terms of profit, the company's gross margin in 2023Q1 was 11.24% /yoy+0.18pct/qoq+6.86pct, a significant recovery from month to month, driving the company's net profit loss margin to narrow month-on-month. In the future, as consumer demand recovers and the company's production capacity expands, the scale effect is expected to gradually become apparent, driving the company's profitability back up. The company's chairman's full subscription increased, demonstrating confidence in the company's long-term development. Overall, the company's core competitiveness is outstanding, and the global share is expected to continue to increase. In addition, the company's composite fluid collection business has sufficient long-term planning capacity and is progressing smoothly in the short term. It is expected to occupy a high market share and create a second growth pole for the company. Based on the principle of prudence, we will not consider the impact of this fixed increase on the company's performance and share capital. Based on the marginal improvement of the company's main business, composite fluid collection has created a second growth pole and given a “buy” rating.