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Steady development of plastic packaging printing business

Aug 29, 2018 Leave a message

Steady development of plastic packaging printing business

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Some analysts pointed out that the steady development of the plastic packaging printing business is the "stabilizer" of Zijiang enterprises, and the real estate business has expanded the space for the company's performance growth. At present, the company adopts a “hard OEM” model for Coca-Cola in the pet bottle and preform business, that is, the company only earns processing fees, and adopts “soft OEM” mode for PepsiCo, that is, PepsiCo sets the price of raw materials, and then Zijiang Raw materials are purchased for processing at this price. At present, soft and hard OEMs each account for 30%. In this way, in the face of fluctuations in raw materials caused by oil prices, Zijiang has been relatively stable due to the control of upstream gross margin. Benefiting from the natural growth of the soft drink market, the company's printing and packaging business is growing at an annual rate of around 10%.


In the real estate business, due to the introduction of the restricted approval policy, the scarcity of villa land is highlighted, and villa products are generally optimistic about the market. The third phase of the villa project developed by Zijiang Enterprise Subsidiary Shanghai Zidu Lushan Real Estate Co., Ltd. started construction in the second half of this year and plans to build 122 villas. In recent years, the price of Shanghai villas has continued to rise, and the profit margin is considerable.


The combination of plastic packaging and real estate, combined with the fruitful results of some venture capital projects, Zijiang enterprises in the third quarterly report together, 2009 company net profit will be increased by more than 200%.


The first three quarterly reports of the Shanghai Stock Exchange officially unveiled recently. Zijiang Enterprise (600210) achieved a total operating income of 3.972 billion yuan from January to September this year, achieving a net profit of 527 million yuan, a year-on-year increase of 156.83%. Earnings per share reached 0.367 yuan, net cash flow from operating activities reached 908 million yuan, an increase of 114.92%. In the third quarter, the net profit was 299 million yuan.


The sales and profit of the main products of Zijiang enterprise packaging business increased significantly compared with the same period of last year, which was one of the main reasons for the rapid growth of its performance. Its film business decreased compared with the same period of last year, which brought a certain increase in the profit of the company's packaging business. In addition, there are two major factors that directly lead to a substantial increase in the company's profits: First, the Shanghai real estate market sales have improved since the beginning of the year, the company's holding subsidiary Shanghai Zidu Lushan Real Estate Co., Ltd. villa sales increased significantly compared with the same period last year and new Increased profits; Second, the company's wholly-owned subsidiary Shanghai Ziquan Packaging Co., Ltd. obtained compensation income due to demolition increased the company's net profit of more than 50 million yuan.


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