The company released annual reports for 24Q1 and 23

The 24Q1 company's revenue was 3.5 billion yuan, up 19%; the mother was 220 million, the same increase was 21%; after deducting not 240 million yuan, the same increase was 54%;

23A's revenue of 15.2 billion yuan, a decrease of 7%, a decrease of 3%, deducted of not 1.5 billion dollars, and a decrease of 1%; of these, 23Q4 revenue of 4.4 billion was increased by 2%, the equivalent of 450 million yuan was reduced by 3%, and after deducting non-460 million, the same increase was 4.5%.

The company's 2023 annual report announced a dividend of 570 million; the previous half year's dividend was 300 million, with a total dividend of 870 million yuan for the whole year, with a dividend rate of 60.3%.

By product, 23A paper boutique packaging revenue of 11 billion yuan accounted for 73% of the total, a decrease of 6.6%; revenue from packaging ancillary products accounted for 17%, a decrease of 8%; revenue from environmentally friendly paper and plastic products accounted for 7%, a decrease of 5%.

By region, domestic revenue of 11.5 billion yuan accounted for 76%, a decrease of 12%; overseas revenue of 3.7 billion yuan accounted for 24%, an increase of 15%.

The company's 24Q1 gross profit margin was 22%, down 1.6 pct; net profit margin was 6.5%, up 0.3 pct.

In 2024, the company will adhere to the path of international development based on a comprehensive cost leading strategy, combined with differentiation strategies, regional strategies and project strategies, and strengthen lean, automation, informatization, intelligence, project management and brand building by continuing to develop new customers, emerging market segments and new businesses:

1. Increase investment in overseas markets and actively expand overseas markets

The company will increase investment in overseas markets and actively expand overseas markets. Promote the commissioning of the Surabaya project in Indonesia, the Jakarta project in Indonesia, the Pyongyang project in Vietnam, and the Delhi project in India to improve the international supply chain; start construction of a new plant in Mexico, plan to start production within the year to open up a new market for heavy packaging; launch the construction of a new factory in the Philippines, plan to start production within the year to develop new categories of leather box packaging; launch intelligent upgrading of software and hardware facilities in overseas factories to enhance core manufacturing capabilities.

2. Actively explore new environmental protection markets and explore more development opportunities

The company will continue to explore new markets and explore more development opportunities for the development of Yutong Environmental Protection on the basis of existing eco-friendly plant fiber packaging. At the same time, the company will strengthen its marketing capabilities in European and American markets to serve all types of customers; continue to strengthen research and development of innovative molding processes and products to provide more cutting-edge solutions to the market; establish brand demonstration factories, introduce advanced operating models, and add brand and product experience centers to enhance customer stickiness and brand experience in multiple dimensions and channels.

3. Continuously improve the intelligent production process of cigarette packs, and develop the market in multiple dimensions. The company's cigarette bag business will continue to be driven by intelligent construction to extend the industrial chain, starting with product design, digital proofing, intelligent production scheduling, AOI automatic optical inspection, automatic workshop material collection and intelligent logistics distribution, and continuously improve the intelligent production process, further improve production efficiency, reduce manufacturing costs, and enhance industry competitiveness. In the field of digital construction, the company will strengthen data analysis, optimize production plans and inventory management, and actively experiment and apply it in the fields of AOI automatic optical inspection, AGV intelligent robot logistics scheduling, energy management, energy saving and consumption reduction, etc., and strive to achieve the integration of the four streams of business flow, information flow, logistics and financial flow.

4. Deepen regional and project management strategies, achieve high-quality strategic growth, continue to deepen and promote regional and project management strategies, promote branch companies' business expansion and strength, market segmentation and refinement, and achieve high-quality strategic growth. In the field of market development, strengthen regional and project marketing team building, implement the “one customer, one policy”, dig deeper into customer potential, and focus on breaking through new customers.

At the same time, we will continue to explore overseas environmental protection business markets and strengthen B2B business lines. Actively develop new businesses such as daily-use chemical packaging, food card boxes, pharmaceutical packaging, and heavy packaging.

Update profit forecasts and maintain “buy” ratings

We expect the company's net profit to be 17.60/20.24/2,402 billion yuan for 24-26, EPS of 1.89/2.17/2.58 yuan/share, respectively, and the corresponding PE of 14/12/10X, respectively.

Risk warning: Consumer electronics demand falls short of expectations, diversified business development falls short of expectations, risk of fluctuations in raw material prices, risk of exchange rate fluctuations, etc.