Greatview Aseptic Packaging (468) H2 2023 earnings summary

Executive summary

• FY2023 revenue declined 3.1% YoY to RMB3,816.7m, while net profit rose 33.9% to RMB244.2m, supported by stronger gross margin, lower freight costs and FX gains.

• Sales volume fell 11.6% to 21.2bn packs; international growth and a stronger Italian production base partly offset intensified competition and weaker PRC demand.

Financial highlights

• Revenue was RMB3,816.7m versus RMB3,937.0m; cost of sales fell 6.4% to RMB3,135.6m.

• Gross profit increased 15.8% to RMB681.1m; gross margin rose 2.9 percentage points to 17.8%.

• Operating profit reached RMB319.6m versus RMB227.5m; profit before tax was RMB324.1m versus RMB232.8m.

• Net profit attributable to shareholders increased 33.9% to RMB244.2m; basic and diluted EPS rose to RMB0.18 from RMB0.14.

Outlook and guidance

• Priorities include expanding PRC and international customer bases, strengthening local operations and product development, improving after-sales service, and advancing digitalisation and sustainability.

• Focus areas include strict product-quality and cost control, operational excellence, and digital products using big data, IoT and AI.

• Production expansion is planned at an estimated RMB441.3m, with forecast spending of RMB70.9m in 2024, RMB210.8m in 2025 and RMB159.6m in 2026.