The company released its annual report for the year 23 and the quarterly report for the year 24
24Q1 revenue was 3.6 billion yuan, up 6%; net profit due to mother was 280 million yuan, up 33%; 23A company's revenue was 13.8 billion, down 2%, net profit attributable to mother was 770 million, up 37%; net profit from non-return to mother was 750 million yuan, up 62%; of these, 23Q4 revenue was 3.1 billion, down 2%, net profit attributable to mother was 70 million yuan, up 214%.
The company's main business has maintained a good trend. Market prices for major raw materials have declined, orders from major customers have increased year on year, gross margin of the company's products has increased year on year, and overall profit has increased over the previous year.
The company's three-piece cans maintained steady growth. Among them, innovative products performed well and won market favor; sales in the two-piece can business increased year-on-year, and profit levels improved compared to the same period.
The company plans to distribute a cash dividend of 310 million yuan (tax included) in 2023, with a dividend rate of 40%; by product, revenue from metal packaging products and services in 23 was 12 billion yuan, a decrease of 3%, a gross profit margin of 16.83%, an increase of 4 pcts; revenue from filling services was 150 million yuan, an increase of 0.5%;
The company's 24Q1 gross profit margin was 18%, an increase of 3.4 pcts, a net profit margin of 7.8%, and an increase of 1.6 pcts.
In '23, the company sold 18.3 billion cans of metal packaging, an increase of 4%; filling 540 million cans, a decrease of 19%.
Steadily plan major asset acquisition projects to help the scale and performance of operations. Within 23 years, the company plans to issue a voluntary conditional comprehensive offer to all shareholders of COFCO Packaging, a listed company on the Hong Kong Stock Exchange Limited, to acquire all issued shares of COFCO Packaging in cash. As of April '24, this project is progressing actively and in an orderly manner.
Promote the deep-processing products business and enhance new impetus for development
Through the model of independent research and development and cooperation with well-known companies, the company has launched a series of private brand products such as “Xiwang” sports nutrition drink, “Le K” craft beer, and “Yuanben Shanliang” prepared dishes to the market, and has continuously enriched the product categories. Currently, it is being sold simultaneously online and offline.
Promote international development strategies and study overseas investment opportunities
The company co-invested with COFCO Packaging Co., Ltd. and Haoneng (Hong Kong) Co., Ltd. to invest and build a metal packaging product production project in central and eastern Europe. While adhering to endogenous development, the company is also continuously seeking development in overseas markets, seeking new market opportunities through overseas layout, deepening business cooperation with international customers, and steadily advancing the company's internationalization business process.
Update profit forecasts and maintain “buy” ratings
The company is committed to the R&D, design, production and sales of metal packaging products such as food and beverages, and has become a benchmark enterprise for one-stop comprehensive packaging solutions in the industry. In 2024, the company will continue to focus on its main business, consolidate its core competitiveness, optimize and upgrade its product structure, and enhance its ability to innovate. The company's net profit for 24-26 is estimated to be 9.3/10.7/1.23 billion yuan, EPS 0.36/0.42/0.48 yuan/share, respectively, and the corresponding PE is 13/11/10X, respectively.
Risk warning: the risk of high customer concentration; the risk of fluctuating raw material prices; customer food safety incidents; operational management risks caused by epitaxial development, etc.