Joy Wisdom: is expected to benefit from the "double carbon policy", the new investment project is about to start

"In the future, Joyrepak will continue to leverage the IPO opportunity and focus on providing customizable and recyclable plastic packaging overall solutions as its core business, aiming to become the leading customizable and recyclable plastic packaging supply chain service provider in the industry," Luo said. Joyful Intelligent Travel: Expected to Benefit from "Dual-Carbon Policy", New Fundraising Project to Be Launched Two is the overall packaging promotion of cost reduction and efficiency improvement, deep binding customers to lay a foundation for advantage. Joyrepak started as a pioneer in providing "integrated packaging solutions" services in the segment, and the company's "integrated packaging solutions" service model can help customers optimize their overall packaging solutions, reduce operating and management costs related to packaging, improve the efficiency of their packaging operations, and improve the environmental performance of their products.

Three is the continuous optimization of rental services, multi-track betting to enhance profitability. Joyrepak has promoted the operation model of rental services to further lower the threshold for the use of reusable packaging. In 2023, the company made good progress in expanding its business in the white goods and related parts manufacturing industry, with its rental and operation service revenue in the industry growing rapidly. In addition, it actively explores alternative applications in the retail logistics, fruit and vegetable fresh food, wine and beverages, and pharmaceutical and chemical industries to continuously improve its business performance and profitability.
In 2023, Joyrepak achieved revenue of 403 million yuan and net profit of 36.12 million yuan attributable to the listed company shareholders, and net profit attributable to the listed company shareholders excluding non-recurring items of 31.17 million yuan. In the first quarter of 2024, the company achieved operating revenue of 85.0784 million yuan and net profit attributable to listed company shareholders of 9.5896 million yuan, achieving net profit attributable to listed company shareholders after deducting non-recurring extraordinary gains and losses of 8.1467 million yuan.

Tianfeng Securities predicts that Joyrepak will achieve net profit attributable to mother company of 0.4/0.5/0.6 million yuan in 2024-2026 respectively, EPS of 0.24/0.31/0.36 yuan per share, and corresponding PE of 35/27/23X.
Continuous innovation advantage, accelerating expansion of capacity
As one of the earliest domestic recyclable packaging enterprises, Joyrepak attaches great importance to the research and development of products and technological processes, and has established a complete R&D system, achieving good R&D results.

After long-term technological accumulation and continuous technological innovation, the company is a "special, specialized, and new" enterprise in Ningbo City, and the company's technology R&D center has been evaluated as "provincial high-tech enterprise R&D center" and "Ningbo City enterprise engineering technology center".

The company obtained approval from the Zhejiang Provincial Human Resources and Social Security Bureau and completed the construction of Zhejiang Provincial Postdoctoral Workstation in 2023. The company has built a good intellectual property system, holding 9 invention patents, 68 utility model patents, 64 appearance design patents, and has taken the lead in formulating the Zhejiang Provincial Group Standard T/ZZB0615-2018 "Composite Recyclable Thick Wall Suction Packaging Unit", effectively promoting the standardization construction work of the recyclable thick wall suction packaging industry. In 2024, Joyrepak l will continue to maintain its innovative advantage. According to the announcement of the State Intellectual Property Office, Joyrepak has applied for a patent named "a heavy-duty high-speed cutting equipment and a central positioning mechanism," which realizes automatic alignment of plastic sheet materials, has high automation and production efficiency, patent number CN202410319641.7, application date March 2024.

According to the intellectual property information of Tianyancha, Joyrepak has applied for a patent named "a curing agent for epoxy resin and its preparation method," which falls within the field of curing agent technology and can effectively improve the heat resistance and stability of epoxy resin, patent number CN20241032116.1.7, application date March 2024.
It is worth noting that Joyrepak is accelerating the layout of new projects and continuing to enhance its production capacity. According to the announcement, on May 31, Joyrepak held its third board of directors' 13th meeting and the third supervisory board's 12th meeting, respectively, where they approved the "Resolution on Completion of Fundraising Projects and Investment of Surplus Funds in New Projects". The board agreed to terminate the company's initial public offering stock fundraising projects, including "Green Recyclable Packaging Rental and Intelligent Warehousing and Logistics Construction Project", "Construction Project of Producing 2.3 Million Sets (Sheets) of Green Recyclable Packaging", and "Research and Development Center Construction Project", and invest the surplus funds of 16,149,350 yuan from these projects in the new fundraising project, "New Energy and Home Appliance Industry Recyclable Packaging Production Base Project".

The implementation unit of this project is Joyrepak (Hefei) Carrier Co., Ltd., a wholly-owned subsidiary of the company. Combining market and customer demand, as well as the company's operational capabilities, this project will have an annual production capacity of 400,000 units of foam molding low-pressure foam pallets, welded pallets, and cardboard boxes, as well as an annual rental operation capacity of 232,100 sets of packaging products consisting of combination sets of packaging, thick-walled vacuum packaging, and boxes. It is also learned that the total investment of the project is 46,620.53 million yuan, of which 16,149.35 million yuan is raised from the initial public offering of stock funds, and the remaining funds are sourced from self-funding, bank loans or other financing methods. The project is scheduled to start the preparatory work in April 2024 and is expected to be completed and put into operation by the end of April 2027, with a construction period of 36 months in total.

Joyrepak said that the new project is conducive to promoting the gradual implementation of the company's medium-term and long-term strategic planning and further expanding its market share, enhancing its comprehensive competitiveness, and having a positive promotion effect on the company's business sustainable development. If the project implementation body actually operates to meet expectations, it will enhance the company's future development ability, profitability and competitiveness in the industry. This matter still needs to be submitted to the company's shareholders' meeting for approval.