Cofco Packaging 0906

[winston]

not vested

COFCO PACKAGING(906)

Analysis：

CPMC Holdings (906) is principally engaged in the manufacturing and sale of packaging products used for consumer goods such as food, beverages and household chemical products, extensively covering the packaging markets of beer, carbonated beverages, dairy products, tea beverages, fruit and vegetable beverages, food, household chemical products and other consumer goods.

For the six months ended 30 June 2019, operating revenue of the Group reached approximately RMB3.68 billion, representing an increase of approximately 10.4% over the same period last year.

Profit attributable to shareholders amounted to RMB170 million, representing an increase of approximately 18.8% over the same period last year, mainly attributable to the growth in its two-piece cans business.

The Group will continue to steadily push forward the production capacity expansion at home and abroad, including Fujian Canmaking`s second production line project and the Belgium two-piece can project. (I do not hold the above stock)

Strategy：
Buy-in Price: $3.15, Target Price: $3.45, Cut Loss Price: $3.00

Source: Phillips