Group 1 - The company, Guangdong Yinglian Packaging Co., Ltd., has announced an earnings forecast for the period from January 1, 2025, to June 30, 2025, indicating a potential turnaround in profitability [1] - The earnings forecast has not been audited by registered accountants [2] - The revenue from the fast-moving consumer goods metal packaging easy-open lid segment has shown steady growth, with significant improvements in operational efficiency [3] Group 2 - The company's global development strategy for easy-open lid products continues to be implemented, benefiting from the release of capacity from intelligent and automated equipment, product quality stability, and rapid supply response capabilities [3] - The market competitiveness and profitability of the easy-open lid segment have steadily improved, contributing to the overall market growth [3] - The company has confirmed that the VAT increment deduction has positively impacted the net profit for the current period [3] Group 3 - The earnings forecast is based on preliminary calculations by the company's finance department and has not been audited by an auditing agency [4] - Detailed financial data will be disclosed in the company's 2025 semi-annual report [4]

Core Viewpoint - Privatization has become an important path for delisting in the Hong Kong stock market, with 30 companies delisted this year, 15 of which were through privatization, matching last year's total [1] Group 1: Market Trends - The overall liquidity of the Hong Kong stock market has improved significantly this year, but small-cap and micro-cap stocks still face severe liquidity constraints, with 474 companies having a market capitalization below HKD 100 million [1] - The lack of liquidity, low valuations, and high costs of maintaining a listing are primary reasons for companies choosing to privatize and delist [1] - Privatization can help optimize the market structure by concentrating resources on high-quality companies, thereby enhancing overall market quality and investor confidence [1][3] Group 2: Privatization Cases - Companies from various sectors, including logistics, software development, and retail, have pursued privatization, often offering premiums above market prices to attract shareholder acceptance [2] - For instance, Anke Systems offered HKD 1.10 per share, a premium of approximately 37.5% over its last trading price before suspension [2] - Notable privatization transactions include Yuefeng Environmental Power's privatization by a subsidiary of Hanlan Environment for approximately HKD 11 billion and COFCO Packaging's delisting through a voluntary cash offer totaling HKD 6.066 billion [2] Group 3: Challenges and Costs - Some companies are forced to privatize due to low liquidity, providing shareholders with an opportunity to cash out their investments [4] - Fosun Tourism Culture's privatization was driven by extremely low trading liquidity, with a final share price of HKD 7.75, more than double its last trading price before suspension [4] - The costs associated with maintaining a listing are significant, with fees for companies with market capitalizations between HKD 100 million and HKD 5 billion ranging from HKD 145,000 to HKD 1,069,000 annually [4] Group 4: Market Dynamics - The privatization process is not always successful, as seen with Goldlion Group's failed proposal [6] - Companies like Tan Zai International have successfully passed shareholder meetings for privatization, indicating ongoing trends in the market [6] - Overall, whether seeking to provide exit paths for shareholders or embracing strategic adjustments, privatization is a crucial option for Hong Kong-listed companies to navigate the current market environment [6]

Core Viewpoint - Yinglian Co., Ltd. is accelerating its development in the new energy materials sector, marking a significant step in its dual-driven strategy of "fast-moving consumer goods metal packaging + new energy materials composite current collectors" [1][2] Group 1: Business Development - The headquarters of Jiangsu Yinglian Recycled Current Collector Co., Ltd. was inaugurated, establishing a foundation for large-scale production and aiming to become a global leader in composite current collector solutions [3] - Yinglian Co. is a leading manufacturer of easy-open lids in China and was the first to be listed in this sector on the Shenzhen Stock Exchange in 2017 [1] - The company is focusing on the dual main business model of fast-moving consumer goods metal packaging and new energy materials [1] Group 2: Product Development - Jiangsu Yinglian has developed composite copper foil and composite aluminum foil, which are currently undergoing testing with downstream customers in various battery applications [2] - The company has secured a bulk order from South Korean client U&SENERGY, expected to be fulfilled by December 2024 [1] - The total investment for the new energy power lithium battery composite current collector project is 3.089 billion yuan, with plans for 10 aluminum foil production lines and 134 copper foil production lines, aiming for an annual production capacity of 100 million square meters of aluminum foil and 500 million square meters of copper foil [1] Group 3: Strategic Partnerships - Jiangsu Yinglian signed a strategic cooperation agreement with a well-known automotive company in Guangzhou to develop integrated new materials for next-generation battery technology by March 2025 [2] - The company is advancing the application of composite current collector products in solid-state batteries, leveraging its expertise in vacuum deposition technology and innovative material development [2] Group 4: Industry Collaboration - The inauguration event gathered industry experts and upstream and downstream enterprises, facilitating deep exchanges on material processes and production equipment, thereby enhancing the international competitiveness of domestic materials [3]

Investment Rating - The report initiates coverage with a "Buy" rating for Baosteel Packaging [2][8] Core Views - Baosteel Packaging is the first domestic enterprise to mass-produce two-piece cans, benefiting significantly from the improvement in industry dynamics [7][8] - The demand for two-piece cans is primarily driven by the increase in canning rates, with a projected demand of approximately 57.1 billion cans by 2025, reflecting a CAGR of about 2.0% from 2022 to 2025 [7][45] - The industry is experiencing accelerated consolidation, leading to increased supply-side concentration and a recovery in profitability for major players [7][8][59] Summary by Sections Company Overview - Baosteel Packaging focuses on the research, production, and sales of two-piece cans and tinplate products, with its first two-piece can production line established in 1998 [18][20] - The company has a stable shareholding structure, primarily controlled by China Baowu Steel Group, which holds approximately 52.98% of the shares [38][43] Industry Dynamics - The two-piece can market is expected to see a significant increase in demand due to rising canning rates, particularly in the beer and carbonated beverage sectors [45][46] - The industry has undergone a transformation from a fragmented competitive landscape to a more consolidated one, enhancing the profitability of leading players [59][60] Financial Data and Profitability Forecast - The total revenue for Baosteel Packaging is projected to reach 83.4 billion yuan in 2025, with a net profit of 1.9 billion yuan, reflecting a year-on-year growth of 9.3% [6][8] - The company’s overseas revenue is expected to grow significantly, reaching 2.38 billion yuan in 2024, a 25.8% increase year-on-year [7][30] Operational Efficiency - Baosteel Packaging has established a comprehensive factory layout across China, enhancing logistics efficiency and reducing costs [7][30] - The company maintains a strong cash flow and operational efficiency, with a stable interest expense of around 30 million yuan [7][15]

Core Viewpoint - Yinglian Co., Ltd. is accelerating the development of its composite current collector business, marking a significant step in its dual-driven strategy of "fast-moving consumer goods metal packaging + new energy materials" [2][3] Group 1: Business Development - Yinglian Co., Ltd. is a leading manufacturer of easy-open lids in China, listed on the Shenzhen Stock Exchange in 2017, and is the first listed company in this sector [3] - The company is focusing on both its fast-moving consumer goods metal packaging business and the composite current collector business, implementing a dual main business model [3][6] - The total investment for the new energy power lithium battery composite current collector project is 3.089 billion yuan, with plans to build 10 production lines for composite aluminum foil and 134 production lines for composite copper foil, aiming for an annual production capacity of 100 million m² of composite aluminum foil and 500 million m² of composite copper foil upon reaching full capacity [3][4] Group 2: Technological Advancements - Yinglian Co., Ltd. has successfully developed PET and PP-based composite copper foil and composite aluminum foil, which are currently in the customer verification stage, with bulk orders expected from South Korean client U&SENERGY by December 2024 [3][4] - The company has introduced five production lines from Japan for composite aluminum foil and five production lines utilizing "magnetron sputtering + electroplating" technology for composite copper foil [4] - The company is collaborating with a well-known automotive company and a leading consumer battery enterprise to develop next-generation battery technologies, with its composite current collector materials entering testing for solid-state battery applications [4][6] Group 3: Strategic Significance - The completion of the headquarters base in Jiangsu is significant for large-scale production and aims to position the company as a "global leader in composite current collector solutions" [5] - The event gathered industry experts and upstream and downstream enterprises to promote deep exchanges in material processes and production equipment, enhancing the international competitiveness of domestic materials [5] - The project leverages local industrial infrastructure and government support in the Gaoyou Economic Development Zone, facilitating cooperation between government and enterprises to upgrade the energy industry [5][6]

Group 1 - The stock of Guangdong Yinglian Packaging Co., Ltd. (stock code: 002846) experienced an abnormal trading fluctuation, with a cumulative closing price increase exceeding 20% over two consecutive trading days (June 20 and June 23, 2025) [1] - The company's board of directors conducted a verification of the company's situation and confirmed that there are no undisclosed significant information that could impact stock trading [1] - The board also stated that there are no matters that should have been disclosed according to the Shenzhen Stock Exchange regulations that have not been disclosed, and previous disclosures do not require correction or supplementation [1] Group 2 - In the first quarter of 2025, the company reported a revenue growth of 6.74% year-on-year, achieving a net profit of 11.04 million yuan, which represents a significant increase of 723.54% [2] - The company is advancing the industrialization of its composite electrolyte segment, continuously building capacity, and gradually obtaining small batch orders while collaborating with leading battery customers [2] - The company is accelerating its research and development efforts for lithium metal/composite electrolyte integrated materials for solid-state batteries, expanding applications across various types of batteries [2]

Core Viewpoint - The company, Yinglian Co., Ltd. (002846.SZ), is advancing its dual business strategy focusing on fast-moving consumer goods metal packaging and composite fluid business, with significant progress in both sectors [1] Group 1: Fast-Moving Consumer Goods Metal Packaging - The fast-moving consumer goods metal packaging segment is developing steadily, with the company accumulating deep experience in intelligent production and lean management [1] - In Q1 2025, the revenue scale of this segment increased by 6.74% year-on-year, achieving a net profit of 11.04 million yuan, which represents a substantial year-on-year growth of 723.54% [1] Group 2: Composite Fluid Business - The industrialization progress of the composite fluid segment is continuously advancing, with ongoing capacity construction and gradual acquisition of small batch orders in the downstream market [1] - The company is maintaining collaboration with leading battery customers and accelerating the technological research and development process [1] - The research focuses on developing integrated materials for lithium metal/composite fluid anodes applicable to solid-state batteries, expanding applications across various battery types [1]

Group 1: Company Overview - Baosteel Packaging celebrates its 10th anniversary of A-share listing, marking a decade of growth in the metal packaging industry amid China's high-quality economic development and the rise of new consumer brands [1] - The company has optimized its product structure and enhanced product value to respond to changing consumer preferences and brand client demands [1] Group 2: Market Trends - The younger generation increasingly favors low-alcohol, healthy beverages like Huangjiu, with emotional value becoming a significant purchasing factor [2] - Baosteel Packaging has established itself as a leading supplier of metal packaging for fast-moving consumer goods, collaborating with well-known brands like Kweichow Moutai [2] Group 3: Packaging Preferences - Consumers are prioritizing unique flavors and personalized packaging, leading to a shift towards metal cans for alcoholic beverages due to their lightweight and lower transportation costs compared to glass bottles [3] - Metal cans offer better sealing and longer shelf life, making them more suitable for the growing trend of online purchases and distant logistics [3][4] Group 4: Sustainability and Global Expansion - The global push for sustainable packaging has made metal cans an ideal choice, with higher recycling rates compared to glass and plastic [5][6] - Baosteel Packaging is expanding its overseas operations, including a new smart can production facility in Vietnam, which is expected to enhance its international market position [6][7] - The company has achieved green factory certification for all its subsidiaries, becoming the first in the metal packaging industry to do so, and is actively pursuing a dual carbon strategy [7]

Core Viewpoint - The credit rating report indicates that the company, 嘉美食品包装 (Jia Mei Packaging), maintains an AA credit rating, reflecting its strong position in the metal can production industry, but faces challenges due to high customer concentration and reliance on major clients [3][6][19]. Company Overview - 嘉美包装 is one of the largest metal can manufacturers in China, providing a comprehensive range of food and beverage packaging solutions, including three-piece cans, two-piece cans, and aseptic paper packaging [5][13]. - The company has established a nationwide production network with bases in multiple provinces, enhancing its service capabilities and customer reach [5][15]. Financial Performance - In 2024, the company reported a net profit increase of 18.78% due to a decrease in raw material costs, particularly for tinplate used in three-piece cans [6][19]. - The company's total assets as of March 2025 were 41.25 billion, with total liabilities at 14.79 billion, indicating a stable financial position [3][4]. Customer Dependency - The company has a high customer concentration, with its largest client, 养元饮品 (Yangyuan Beverage), accounting for 32.48% of its revenue. This dependency poses risks if the client's performance declines [15][17]. - Despite maintaining stable relationships with major clients, the sales volume and revenue from these clients have shown a downward trend, necessitating close monitoring of their operational stability [7][15]. Market Environment - The metal packaging industry is experiencing increased concentration due to mergers and acquisitions, which may enhance competitive dynamics [10][12]. - The demand for metal packaging is supported by the growth in the soft drink sector, which saw a 6.3% increase in production in 2024, providing a favorable outlook for the industry [10][12]. Operational Efficiency - The company's overall capacity utilization remains low, with significant seasonal fluctuations affecting production levels. The utilization rate for three-piece cans has decreased due to reduced orders from major clients [15][18]. - The company employs a "sales-driven production" model, which has helped maintain a high production-sales ratio despite the challenges faced [15][18]. Raw Material Costs - The cost of key raw materials, particularly tinplate, has decreased, positively impacting the company's profitability. The average procurement price for tinplate fell by 9.97% in 2024 [19]. - The company faces ongoing pressure to control costs, as over 70% of its operating costs are attributed to direct materials, making it sensitive to fluctuations in raw material prices [19][20].

Investment Rating - The investment rating for the company is "Buy" and is maintained [11]. Core Views - The report indicates that the domestic two-piece can prices and profitability are expected to recover, with the company actively seeking opportunities in overseas markets [7][9]. - The company's net profit for Q1 2025 is approximately 190 million yuan, reflecting a year-on-year decline of 28%, primarily due to the pressure on two-piece can business profits [8]. - The completion of the acquisition of COFCO Packaging has significantly reduced the risk of over-reliance on a single customer, with the current major customer revenue proportion expected to drop to around 20% [8]. - The report anticipates that the two-piece can business will see a price increase in the second half of 2025, driven by rising aluminum processing fees and improved bargaining power [9]. Summary by Sections Market Overview - The average market price of aluminum ingots (A00) for April-May 2025 is projected to be 19,990 yuan/ton, a decrease of 443 yuan/ton compared to the average price of 20,433 yuan/ton in Q1 2025 [2][7]. Financial Performance - The company is expected to achieve a net profit of 1.414 billion yuan in 2025, with projected profits of 1.422 billion yuan in 2026 and 1.709 billion yuan in 2027, corresponding to P/E ratios of 11, 10, and 9 respectively [19]. Business Strategy - The company is focusing on integrating the operations of COFCO Packaging and relocating excess domestic production lines overseas, which is expected to optimize the supply-demand and competitive landscape for two-piece cans in China [9][15]. - The combined production capacity of the company and COFCO Packaging is estimated to be around 27.5 billion cans, leading to a market share of nearly 40%, significantly ahead of competitors [15]. Future Outlook - The report suggests that the company’s performance drivers may include the recovery of two-piece can gross margins, expansion of overseas business, improvement in domestic consumption demand, and an increase in the proportion of high-margin innovative products [15].