The company released its 2024 annual report. In 2024, revenue/net profit attributable to shareholders/net profit attributable to shareholders after non-recurring gains and losses were 3.525 billion/468 million/440 million yuan, representing year-on-year growth of +4.34%/+14.63%/+14.46%. In Q4, revenue/net profit attributable to shareholders/net profit attributable to shareholders after non-recurring gains and losses were 986 million/163 million/152 million yuan, with year-on-year growth of +9.57%/+41.68%/+46.72%. Both Q4 revenue and profit growth exceeded expectations.

On the income side, the彩印包材 (color printing packaging) is under pressure, while the薄膜 (film) business is experiencing high growth. In 2024, the revenue from彩印包材 is 2.477 billion yuan, a year-on-year decrease of 2.92%, with a gross margin of 26.26%, down 1.16 percentage points year-on-year; the revenue from the薄膜 business is 724 million yuan, a year-on-year increase of 37.9%, with a gross margin of 10.27%, up 2.33 percentage points year-on-year.

On the profit side, period expense control is good, and the net profit margin is rising. In 2024, the gross profit margin/net profit margin is expected to be 23.78%/13.37%, with a year-on-year change of -0.88pct/+1.11pct; in 2024, the management/sales/R&D/financial expense ratios are 3.4%/1.65%/4.23%/-0.14%, with year-on-year changes of -0.41pct/-0.05pct/-0.06pct/-0.43pct, which collectively enhance the pre-tax profit margin by 0.95pct.

On the dividend front, the high dividend policy continues. In 2024, the company plans to distribute a cash dividend of 6.2 yuan per 10 shares (tax inclusive), corresponding to a payout ratio of 81.19% and a dividend yield of 5.66%.

Investment Advice

The estimated revenue for 2025-2027 is 3.867/4.137/4.409 billion yuan, with year-on-year growth of +9.69%/+6.98%/+6.58%. The net profit attributable to shareholders is 518/577/619 million yuan, with year-on-year growth of +10.69%/+11.51%/+7.28%. The PE ratio corresponding to the closing price on March 24, 2025 is 13.62/12.21/11.38 times. The "增持" rating is maintained.

【Risk Warning】

Rising raw material prices: The company's main raw material is plastic pellets, which are strongly correlated with crude oil prices. If crude oil prices rise, the company's cost pressures will become more pronounced, squeezing profitability.

Demand not meeting expectations: The company's downstream customers are mainly leading clients in the food, daily necessities, and pharmaceutical sectors. If consumer demand falls short of expectations, both product prices and sales volume will be impacted.

Intensified competition risks in the industry: In the context of weak terminal demand, competition in the industry will intensify, and competitors may adopt strategies such as price wars to seize market share, which will have a negative impact on the company's performance.