The company released a three-quarter report

The company's 24Q3 revenue was 3.7 billion, an increase of 2%; net profit to mother decreased by 13% by 0.21 billion, and net profit after deducting 0.22 billion to mother decreased by 12%;

24Q1-3's revenue of 10.9 billion increased by 1.4%; net profit of 0.76 billion to mother increased by 8%; net profit of 0.74 billion after deduction increased 9.4%, mainly due to the increase in sales volume of the company's products and the decline in raw material prices; the gross profit margin of 24Q1-3 company 17.3% increased by 1.22pct; and the net profit margin of 6.95% increased by 0.52 pct.

Acquisition of COFCO Packaging helps expand main business and strategic customers

Regarding the progress of the current acquisition of COFCO Packaging, the company has received approval from the State Administration of Market Supervision and Administration and the Beijing Municipal Bureau of Commerce. The approval procedures that still need to be carried out for this transaction include the shareholders' meeting considering the relevant bill on the transaction; the National Development and Reform Commission's filing of the overseas investment; and the remittance of the transaction price to complete the foreign exchange registration and foreign exchange purchase procedures for overseas investment.

Both COFCO Packaging and Orekin are deeply involved in the metal packaging industry and are companies in the same industry. Through this acquisition, the listed company will consolidate its main business, expand strategic customers, and promote the company's sustainable development in the long term.

Looking at its main business, COFCO Packaging is engaged in the production and sale of consumer packaging products, covering packaging markets for beverages, beer, dairy products, etc.

Through this transaction, the company will further consolidate the main business of two-piece cans, three-piece beverages, and milk powder cans, and further enrich domestic product lines such as steel drums, aerosol cans, plastic packaging, etc.; the company will also achieve complementary advantages with COFCO Packaging from multiple dimensions such as technology, marketing, production capacity, supply chain, etc., to serve customers with different needs through differentiated positioning, thereby further expanding strategic customers, reducing dependence on a single customer, and promoting sustainable development.

Adjust profit forecasts to maintain “buy” ratings

Based on the 24Q1-3 performance, there is uncertainty about the current macro-consumption environment; we adjusted the profit forecast. The company's EPS for 24-26 is 0.34 yuan, 0.38 yuan, and 0.43 yuan (the original value was 0.36/0.42 and 0.48 yuan), respectively, and PE is 16X, 14X, and 13X, respectively.

Risk warning: raw material price fluctuation risk; customer dependency risk; business development risk.