Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][12]. Core Views - The company reported steady revenue growth, with Q1-Q3 2025 revenue increasing by 6.56% year-on-year to 2.706 billion RMB, and net profit rising by 1.43% to 309 million RMB [2]. - The company's plastic flexible packaging film business is expected to be the main contributor to revenue growth, aligning with the trend towards environmentally friendly packaging materials [2][4]. - The gross margin slightly increased in Q3 2025, driven by resilient downstream demand and a decrease in crude oil prices [3]. - The company has a strong dividend payout history, maintaining a payout ratio above 80%, and is expected to continue high dividends due to stable performance from ongoing projects [4]. Summary by Sections Performance Review - For Q3 2025, the company reported revenue of 960 million RMB, a year-on-year increase of 8.02%, and a net profit of 126 million RMB, up 1.00% [2]. - The company’s revenue and net profit for Q1-Q3 2025 were 2.706 billion RMB and 309 million RMB, reflecting growth rates of 6.56% and 1.43% respectively [2]. Operational Analysis - The company’s main business, color printing composite packaging materials, is expected to maintain stable growth, supported by resilient demand in downstream sectors [2]. - The company is actively developing environmentally friendly packaging materials, which is anticipated to contribute significantly to revenue growth in Q3 2025 [2][4]. Financial Metrics - The gross margin for Q1-Q3 2025 was 22.33%, with a slight increase to 24.44% in Q3 2025, while the net profit margin was 11.50% [3]. - The company’s projected revenue for 2025-2027 is 3.784 billion RMB, 4.208 billion RMB, and 4.647 billion RMB, with respective growth rates of 7.33%, 11.19%, and 10.44% [5][10]. Future Outlook - The company is set to launch new production capacities in 2026, which will provide additional revenue streams [4]. - The company is also exploring new consumer segments, such as pet food, which is expected to enhance growth opportunities [4].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 14.78 CNY, maintaining the rating [4][8]. Core Insights - The company has demonstrated steady revenue growth, with H1 2025 revenue reaching 1.746 billion CNY, a year-on-year increase of 5.78%, and a net profit of 183 million CNY, up 1.72% year-on-year [1][2]. - The company is focusing on both domestic and overseas markets, with overseas revenue growing by 39.67% year-on-year in H1 2025, indicating successful market expansion [2]. - The company is enhancing its production capacity with several projects expected to be operational by mid-2026, which will support future growth [2]. Financial Performance - In H1 2025, the company's gross margin was 21.18%, a decrease of 1.20 percentage points year-on-year, while the net profit margin was 10.55%, down 0.49 percentage points year-on-year [3]. - The company has effectively controlled its expenses, with a total expense ratio of 9.45%, a decrease of 0.96 percentage points year-on-year [3]. - The projected revenue for 2025-2027 is expected to grow to 3.797 billion CNY, 4.169 billion CNY, and 4.557 billion CNY, respectively, with corresponding net profits of 503 million CNY, 558 million CNY, and 632 million CNY [4][9]. Market Position and Strategy - The company is positioned as a leader in the domestic plastic flexible packaging industry, continuously accumulating technological and management advantages [4]. - The company is actively investing in product innovation and expanding its market share, which is expected to benefit from industry upgrades and structural optimization [4].

Core Insights - Yongxin Co., Ltd. has achieved significant growth since its listing in July 2004, with a market capitalization increase from 1.22 billion to 7.38 billion, reflecting both scale expansion and sustained profitability improvement [1][5] - The company's main business includes the production and sales of color printing composite packaging products and vacuum aluminum film products, with color printing packaging materials accounting for 70.27% of revenue [3] - Over the past 21 years, Yongxin has maintained profitability, with a cumulative net profit growth of 970.84%, and has recorded profits in 19 out of 21 years [3] Financial Performance - In 2020, Yongxin achieved revenue of 2.737 billion, which increased to 3.525 billion in 2024, reflecting an average annual growth rate of approximately 6.5% over the past five years [3] - The net profit attributable to shareholders rose from 303 million in 2020 to 468 million in 2024, with a compound annual growth rate of 11.5%, indicating stronger profit growth compared to revenue growth [3] - The company's market value has increased by 5.04 times since its listing, demonstrating strong long-term investment value, although it has seen a decline from its peak market value of 9.848 billion in June 2015 [5]