China Metal Packaging Leading Enterprises COFCO Packaging Listed Funds for Two-Piece Cans with Two Production Lines

COFCO Packaging (00906) plans to raise 200 million U.S. dollars (about 1.56 billion U.S. dollars) on the second month of next month (November 2, 2009). The news is that the company is making proceeds from this fundraising. One of the important uses is for two-piece cans. Build two production lines. It is reported that COFCO Packaging has signed agreements with major customers to ensure that there is a certain demand for these two productions. Wanglaoji will account for half of production, and the other half will replace Coca-Cola China and Tsingtao Beer (00168). Wait for customers to produce two cans of products. Wang Lao Ji’s business in the north mainly uses two cans, while the south still has three-piece cans.

In addition, BOCI International reported that COFCO Packaging also plans to enter the plastics and paper packaging business. As the parent company COFCO enters into Mengniu (02319), the market expects that COFCO Packaging and Mengniu will have cooperation opportunities in this regard.

According to the report of the underwriting group, COFCO Packaging predicts that the 2010 P/E ratio is 13-17 times, while BOC International predicts it to be 11.4-16 times. The underwriting group report anticipates that the 2009-11 earnings of COFCO will increase by 57.5%, 31.2% and 17.7%, respectively, while the gross profit margin in 2008-11 will be 14%, and the average net profit will be 4% on average. The company’s market share in the Mainland The first place is 6.5%, but the second place also accounts for 4.3%, reflecting the market dispersion. COFCO Packaging will be listed on November 13. The sponsors are BOC International and CICC.