How much do you know about the big names in e-cigarette packaging?

Introduction: The packaging industry is also known as a shadow industry. It is reported that companies in the packaging industry have been riding the wave since 2013. Let's take a look at the investment potential of some companies in the industry based on the logic and data from some brokerages.
The heated tobacco information network reports: Companies in the packaging industry have been riding the wave since 2013. Let's take a look at the investment potential of some companies in the industry based on the logic and data from some brokerages.
1. Meiyingsen:
Main clients include Samsung, Amazon, IKEA, ZTE, and Jireh, among other high-end clients. The rapid growth of downstream industries has led to an overall industry capacity of about 18.9 billion yuan, with the company holding about 6% market share. Since 2012, the company's performance has significantly improved, with revenue growth of 26.33% in 2013 and a net profit increase of 62% (due to declining costs). Since 2012, ROE has been continuously improving, and gross and net profit margins have steadily increased with the rising capacity utilization of new production bases. Operating cash flow exceeds net profit, and there are no bank loans. The company is expected to see a 50%+ growth in its mid-year report. Over the past three years, the rapid development of electronic products could have led to even better performance if not for the company's insufficient production capacity. This year, the company has obtained packaging supplier qualifications from seven enterprises, including ZARA, Harman, and ZTE (downstream clients are mainly multinational corporations, and becoming a supplier to multinational companies requires a long certification process, but once integrated into their supply system, there will be a stable source of orders). At the same time, the company is continuously seeking quality targets for mergers and acquisitions in the industry, gradually entering the packaging of alcoholic beverages, luxury goods, online shopping, and electronic labels. I believe that among the many packaging companies in A-shares, Meiyingsen is one of the most likely to succeed in the long term, but the current price is not a good entry point. As a company in a niche industry, it should not be bought during a hot market.
2. Hexing Packaging:
Hexing is positioned as a mid-to-low-end paper packaging company (almost no cooperation with big brands) and has previously focused on serving electrical appliance companies. The company holds about 20% market share. Before 2013, due to the nature of the industry and the inability to effectively transfer rising costs, the company's gross profit margin had been declining, with revenue growth not translating into profit growth, and its gross profit margin was far lower than that of Meiyingsen. However, Hexing Packaging has a faster turnover rate, and its ROE is slightly higher than that of Meiyingsen. In the past two years, the company has begun to transform, striving to learn from Meiyingsen and develop towards integrated packaging. The company has a stronger desire for mergers and acquisitions, with many capital operations in recent years, and is expected to see a 40%+ growth in its mid-year report; currently, its valuation is similar to that of Meiyingsen, and it has no competitive advantage. Let's observe and see how it develops.
3. Aorijin:
A leading manufacturer of three-piece cans, with a total capacity of beverage cans of about 30 billion yuan, the company holds about 12% market share, with an annual growth rate of 15% for beverage cans, which is expected to decline to around 12% in the future. The concentration of beverage cans is high, making it difficult to achieve growth levels exceeding the industry growth rate. About 70% of the company's orders come from Red Bull, and it has grown in recent years alongside Red Bull's rapid growth. I am not optimistic about this company; perhaps in the future, it can break away from Red Bull and expand to other companies.
4. Slaike:
Manufactures high-speed easy-open can production equipment and molds. Since its establishment, it has steadily increased its domestic market share due to advanced international technology and significant price advantages. Currently, apart from a few manufacturers that can produce low-speed easy-open can production equipment, there are no competitors close to the company in terms of technology level and product performance. It is a typical hidden champion and desert flower company, with stable future growth potential. After going public, it can further expand its market share through financial and brand advantages, and there is also potential for active overseas development. In the short term, the stock was previously wildly speculated after its IPO, similar to the above-mentioned companies, and the current valuation does not have an advantage, making it not a good price, but the company still has long-term investment value and is worth following closely.
5. Shanghai Green New:
The company mainly produces vacuum aluminum-coated paper, with current major end customers being tobacco companies. The annual growth rate of cigarette production is only 5%, and in recent years it has decreased to 3%, leading to slow growth in the cigarette label industry. Even considering the increasing proportion of aluminum-coated paper in cigarettes, the growth rate of the aluminum-coated paper industry is expected to be no higher than 5%. In 2010, the scale of China's aluminum coating industry was about 8.9 billion yuan, and the company currently holds about 11% market share. Due to the slow growth of the industry, the company is promoting growth in two ways: mergers and acquisitions, and extending packaging to other industries such as food and cosmetics.
6. Jinjia Co., Ltd.:
The company mainly produces cigarette labels, with end users being cigarette companies. The annual growth rate of the cigarette label industry is about 3%, with a total capacity of about 26 billion yuan, and the company holds about 8% market share. Cigarette label printing is the highest-end product in the printing industry, and the company's profitability is stable, but growth potential is insufficient. Entering the e-cigarette market may be a topic, but short-term profits are not visible. Last year, it was at a favorable point, and below 8 yuan was indeed a good entry point, but unfortunately, it has risen to 20, and the management is desperately reducing their holdings. After the downturn, it is still expensive. #p#分页标题#e#
7. Dongfeng Co., Ltd.:
Similar to Jinjia Co., Ltd., with a slightly lower market share of about 6.5%, it has also recently entered the e-cigarette industry. Dongfeng's gross profit margin has consistently been higher than its peers (over 50%, while Jinjia Co., Ltd. and Yongji Printing's gross margins are around 40%), raising questions about whether it inflated its figures for its IPO. In explaining its high gross margin, Dongfeng Printing denied contributions from market share and customer differentiation, attributing it to an extended industrial chain. Although Jinjia Co., Ltd.'s cigarette label printing industry also extends upstream, Dongfeng believes its industrial chain is more complete, with lower costs, higher efficiency, and less waste. Whether to believe this explanation is up to you.
8. Tongchan Lixing:
The company mainly produces cosmetic packaging, with a market capacity of about 22 billion yuan and a market share of about 5%. The annual growth rate of the cosmetic packaging industry is about 5%, and the low industry growth affects the company's growth rate. At the same time, due to poor bargaining power with customers, gross profit margins fluctuate significantly, and how to enhance bargaining power is key to long-term value.
9. Yongxin Co., Ltd.:
The company mainly produces high-barrier composite plastic packaging products, serving fast-moving industries such as daily chemicals, food, and pharmaceuticals. The industry growth rate is around 14%, with a market capacity of over 100 billion. The industry concentration is low, with no strong competitors. The company's profitability is relatively stable, but there is no possibility of rapid growth, and the current price is not undervalued.