Metal Packaging Half-year Report: Profits Soar Industry Says Future Growth Is Expected

According to the proportion of sub-categories in the cumulative operating income of the national packaging industry in 2020 by The China Packaging Association, the cumulative main business income of metal packaging containers and materials manufacturing is 108.326 billion yuan (10.76%), with a year-on-year growth of -7.84%. In the first half of 2021, the operating revenue of metal container packaging industry showed a significant year-on-year increase. Specifically, listed companies disclosed semi-annual reports:

Auregin on August 25 evening disclosed the 2021 half annual report, the reporting period, the company achieved operating revenue of 654888 million yuan, a year-on-year growth of 41.05 percent; Operating profit was 794.79 million yuan, up 114.73% year on year; Net profit attributable to shareholders of listed companies was 584.41 million yuan, up 221.65% year-on-year.

Cofco Packaging announced on August 19 that the sales revenue in the first half of 2021 was about 4.678 billion yuan (the same units below), up about 1.301 billion yuan year-on-year, up 38.5%; Net profit was 258 million yuan, up 40.8 percent year on year.

Baosteel Packaging disclosed in August 28, 2021, the company in the first half of 2021 to achieve total operating revenue of 3.19 billion, a year-on-year growth of 26.5%; Net profit of 150 million yuan, up 75.8% year on year; Earnings per share were 0.16 yuan.

In its semi-annual performance report released on The evening of August 29, The company said its revenue in the first half of 2021 was about 846 million yuan, up 62.26 percent year on year. The net profit attributable to shareholders of listed companies was about 32.72 million yuan, a year-on-year decrease of 29.98%; Basic earnings per share was 0.1029 yuan, down 31.54% year on year. Distribution plan is: do not share out bonus, do not send red, do not turn add. The 2021 semi-annual report shows that the main business of ACTIs is the metal products industry, accounting for 100.0% of the revenue.

Sheng Xing Shares in August 26, 2021 disclosed in the report, the company in the first half of 2021 to achieve total operating revenue of 2.19 billion, year-on-year growth of 89.1%; The net profit returned to the mother was 72,069 million yuan, which was -44.982 million yuan in the same period of last year. Earnings per share were 0.08 yuan.

As of August 31, Shanghai Shenyin Wanguo Securities Research institute positive metal packaging industry profit improvement logic operation. 1) The competition pattern of packaging sub-circuit is optimized, and the leading players' discourse power in the industrial chain continues to be strengthened, such as Aurikin with metal packaging, CoFCO Packaging, and Yutong Technology with paper packaging. 2) Packaging companies with opportunities of new business extension, traditional business contributes stable cash flow, and new business extension provides valuation flexibility, such as Jinjia Stock (traditional cigarette package business is steadily improving, new tobacco business is increasing valuation), Zijiang Enterprise (subsidiary Zijiang New Materials aluminum film business, rapid growth).

Metal packaging: In the first half of the raw material prices rose significantly, metal packaging single profit performance in the second quarter were better than market expectations, reflecting the optimization of the industry pattern. The price increase was successfully implemented in the middle of the year, and the price increase was about 4+ fen/pot to 0.46-0.47 yuan/pot, which was better than expected.

It is expected that from 21Q3, metal packaging company profits will usher in a reversal, superimposed strong demand end, canning rate continues to improve, performance is expected to achieve high-speed growth. Compared with glass bottles, two cans are more conducive to take-out, home and other consumption scenarios, and the beer canning rate is significantly improved.

In the long run, the industry competition pattern will be optimized: The two-piece tank industry has experienced 5 years of oversupply. With the consolidation of existing capacity, the leading concentration will be improved, and the new capacity will be put into production in a more orderly manner. The voice of metal packaging in the upstream and downstream industry chain will be enhanced, the industry competition order will be reconstructed, and profitability will be restored to a normal level. In the face of the rapid rise of raw material prices in the first half of 2021, the industry raised prices significantly for the first time in the middle of the year, which is expected to continue to expand gross profit in the future. The judgment of the improvement of supply and demand in the metal packaging industry is confirmed.