The hottest invisible champion in the packaging in

2022-08-09
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Packaging industry: invisible champion of anti cyclical undervaluation

China's packaging industry has a huge market capacity. Packaging products are an indispensable part of commodity circulation, and the downstream involves food and beverage, electronics, medicine, household chemicals, tobacco, household appliances, electromechanical and other industries. In 2009, the market scale of China's packaging industry was about 126 billion US dollars, accounting for 22.5% of the world, and the market capacity was huge

the concentration of the packaging industry is low, and there is more room for advantageous enterprises to continue to expand. The packaging industry in developed countries has a high degree of concentration, and the concentration of the top five enterprises in most sub industries is more than 50%. Therefore, China's packaging industry is extremely decentralized, the trend of increasing the degree of concentration is obvious, and the expansion space of advantageous enterprises is broad

the packaging industry has strong anti cyclical ability. The annual average growth rate of the packaging industry in was 21.9%. Since most of the downstream industries are consumer sub industries, the packaging industry has a relatively strong anti cyclical ability. During the economic adjustment period of 2008/09, the packaging industry still achieved a growth rate of more than 15%. Major listed companies also grew steadily

pay attention to the most defensive leader in the pharmaceutical packaging and tobacco packaging sub industry. Its defense, namely 0.1-1% accuracy, is mainly reflected in:

1) the consumption of downstream medicine and tobacco is irreplaceable and extremely stable

2) the company has obvious advantages in its own segmented industries and regions, which are manifested in high market share, stable cash flow and considerable gross profit margin

3) the valuation has a margin of safety

4) potential processors need to make compromises in production efficiency, exceeding the expected growth point. If substantial progress is made in the future, it will bring double improvements in performance and valuation

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