The company released its annual report for the year 23 and the quarterly report for the year 24
24Q1 revenue was 1.7 billion, up 9%; net profit to mother was 120 million, up 128%; 23A company's revenue was 7.1 billion, up 0.6%; net profit to mother was 330 million, up 59%; net profit after deducting non-return to mother was 340 million, up 82%; of these, 23Q4 revenue was 1.9 billion, up 3.6%; net profit from mother was 60 million, up 3175%; net profit from non-return to mother was 66 million, up 361%.
The company plans to distribute a cash dividend of 98 million yuan (tax included) in 2023, with a dividend rate of 29%; by product, metal packaging revenue in '23 was 6.7 billion yuan, an increase of 3%; EMC contract energy revenue was 6.16 million yuan, a decrease of 49%;
By region, overseas revenue in '23 was 6.3 billion, up 0.04%; domestic revenue was 760 million, up 5.55%; the company's 24Q1 gross profit margin was 14.0%, up 3.3 pct; net profit margin was 7.5%, up 4.1 pct.
In 2023, the company sold 12.5 billion cans of metal packaging, an increase of 9% over the same period.
Demand from the downstream beverage beer industry served by the metal packaging industry recovered steadily in 2023. The company actively promotes major customer strategies and expands new customers, new categories and new markets to ensure that overall sales volume growth is not lower than the average growth rate of the industry, while also digging inward, strictly controlling raw material procurement costs and continuously improving inventory turnover, optimizing capacity layout, improving production efficiency, seizing the favorable environment of overall declining interest rates, optimizing debt structure and reducing financial costs, and achieving good operating results; among them:
Three-piece cans continue to grow, actively promote internal management improvements, and drive profit growth; the two-piece can business actively responds to poor overall market demand and is working together at home and abroad to maintain business growth; the filling business continues to grow, steadily improving value-added service capabilities.
Outstanding industrial layout and scale advantages
The company has continuously improved the industrial chain layout. It has set up production bases in many places, covering major developed regions of the country, and can provide customers with a full range of integrated services based on three-piece cans, two-piece cans, aluminum bottles, bottle caps, filling and informatization based on intelligent packaging carriers. While equipping production lines with internationally advanced production equipment, emphasis is placed on the application of automated and intelligent manufacturing in production and operation. The company's production scale, product line and market share of three-piece cans, two-piece cans and aluminum bottles have ranked among the highest in the country.
The company forms long-term strategic partnerships with major domestic suppliers of tinplate, aluminum, etc.; adopts a “stick-in” production layout and establishes a production base in line with the production layout of core customers to meet the needs of core customers to the greatest extent and speed, and to minimize management costs and transportation costs.
Leading the industry in high-end aluminum bottle products
The company's aluminum bottle products are mainly used for the packaging of high-end beer and beverage products. After the acquisition of Bode Technology and the establishment of Shengxing Bode New Materials Company, advanced international production equipment was introduced to expand high-end aluminum bottle production capacity and develop new can types. High-end aluminum bottle production capacity scale, customer structure and technical level are in the leading position in the industry. Against the backdrop of accelerated consumption upgrading trends such as beer and beverages, the market size of high-end aluminum bottle products will increase rapidly, and the advantages of the company's high-end aluminum bottle products will be fully reflected.
Update profit forecasts and maintain “buy” ratings
Relying on industrial layout and scale, quality control, “stick-in” business model, comprehensive solutions, interdependent customer groups, intelligent packaging and brand advantages, the company has formed a strong integrated metal packaging service capability with “promotion” characteristics. We expect net profit for 24-26 to be 432/4.99/574 million yuan, EPS 0.44/0.51/0.59 yuan/share, respectively, and corresponding PE 13/12/10X, respectively.
Risk warning: risk of price fluctuations of major raw materials; risk of product quality control; risk of operational management of business growth and diversified development.