ORG Technology(002701)2025-05-12 05:42Investment Rating - The investment rating for the company is "Buy-A" with a target price of 6.75 CNY, maintaining the rating [4]. Core Views - The company has shown significant growth in Q1 2025, with revenue reaching 5.574 billion CNY, a year-on-year increase of 56.96%, and net profit of 666 million CNY, up 137.91% [1]. - The acquisition of COFCO Packaging has been successfully completed, contributing to a substantial increase in total assets by 66.56% to 30.137 billion CNY as of Q1 2025 [3]. - The company is expected to benefit from a stabilizing supply-demand dynamic in the two-piece can industry, further enhancing its market position and international expansion efforts [9]. Revenue and Profitability - In 2024, the company achieved a revenue of 13.673 billion CNY, a slight decline of 1.23% year-on-year, while net profit increased by 2.06% to 791 million CNY [1]. - The gross margin for 2024 was 16.31%, showing a year-on-year increase of 1.07 percentage points, although Q1 2025 saw a decline to 13.60% [4][8]. - The net profit margin improved significantly in Q1 2025 to 11.99%, up 4.21 percentage points year-on-year, primarily due to investment income from the acquisition [9]. Product and Regional Performance - The revenue from metal packaging products and services in 2024 was 12.123 billion CNY, reflecting a year-on-year growth of 0.70% [2]. - Domestic revenue accounted for 91.34% of total revenue in 2024, while international revenue represented 8.66%, both showing slight declines [2]. Future Projections - Revenue projections for 2025-2027 are 19.180 billion CNY, 21.142 billion CNY, and 24.121 billion CNY, with expected growth rates of 40.28%, 10.23%, and 14.09% respectively [9]. - Net profit forecasts for the same period are 1.227 billion CNY, 1.254 billion CNY, and 1.341 billion CNY, with growth rates of 55.16%, 2.26%, and 6.89% respectively [9].