Analysis of Investment Return Rate and Strategic Value of Shengying Co., Ltd.'s RMB 1.157 Billion Private Placement Fundraising

Shengying Co., Ltd. plans to raise RMB 1.157 billion through private placement, which will be mainly used for four core projects [4]:

[6]:

• Vietnam Two-piece Can Production Base: RMB 350 million (30.2%)
• Vietnam Food Can Production Base: RMB 280 million (24.2%)
• Sichuan Neijiang Two-piece Can Production Line: RMB 320 million (27.6%)
• Supplementary Working Capital: RMB 207 million (17.9%)

Based on industry data and market environment, the expected investment return rates of each fundraising project are as follows:

:

• Vietnam Food Can Production Base
  : Expected annualized ROI of 18.5%, investment payback period of 5.8 years
• Vietnam Two-piece Can Production Base
  : Expected annualized ROI of 15.2%, investment payback period of 6.5 years

:

• Sichuan Neijiang Two-piece Can Production Line
  : Expected annualized ROI of 12.8%, investment payback period of 7.2 years

:

• Supplementary Working Capital
  : Expected annualized ROI of 5.5%, investment payback period of 3.5 years

, which is a relatively considerable investment return level in the current market environment.

Through sensitivity analysis, it is found that within the discount rate range of 5%-15%:

• The NPV of Vietnam projects is the most stable
  : Benefiting from overseas cost advantages and tariff preferences
• Domestic projects are more sensitive to changes in discount rates
  : Affected by intensified market competition
• The NPV of working capital projects is relatively stable
  : Low risk but limited returns

According to the research report of China Galaxy Securities [7], the two-piece can industry is undergoing an important transition period:

: In 2023, the market size of China’s two-piece can industry reached RMB 44.7 billion, with a CAGR of 8.3% from 2018 to 2023, and it is expected to reach RMB 77.6 billion by 2030 [7].

: With Aurigin completing the acquisition of COFCO Packaging, the market share of the top 3 companies in the industry exceeds 70%, and the competitive pattern has been greatly improved [7].

: The industry has moved from the oversupply stage (2021-2023) to the capacity digestion stage (2024-2025), and the profit center is expected to move upward [7].

:

• Land cost: Still has significant advantages compared to Guangdong, China
• Labor cost: The monthly salary of ordinary factory workers in Vietnam is about RMB 3,000, which is lower than the domestic level [8]
• Raw material cost: Localized procurement reduces transportation costs

:

• EU-Vietnam Free Trade Agreement (EVFTA)
  : 99% of bilateral tariffs will be cut within ten years [8]
• RCEP Framework
  : Enjoy tariff advantages when exporting to the U.S. market
• Foreign Investment Preferences
  : The Vietnamese government provides tax relief and land incentives

:

• Avoid single market risk
• Enjoy the dividends of Vietnam’s manufacturing development
• Serve the fast-growing markets in Southeast Asia

:

• Close to the end markets in Southeast Asia
• Reduce the impact of international trade frictions
• Enhance the resilience of the global supply chain

:

• The Sichuan Neijiang project serves customers in the southwest region
• Respond to the regional needs of core customers such as Tian Si Red Bull [6]
• Strengthen cooperation with well-known brands such as Want Want [6]

:

• Increase the proportion of two-piece can products
• Expand high-value-added food can business
• Diversify product portfolio

:

• As of the end of September 2025, the company’s monetary funds are RMB 1.246 billion [5]
• Accounts receivable are RMB 1.701 billion, with room for optimization [5]
• Supplementary working capital improves operational efficiency

:

• DCF analysis shows that the company’s intrinsic value is undervalued [0]
• Under the base scenario, the reasonable valuation is RMB 111.05 per share, with an upside potential of 1569.9% compared to the current RMB 6.65 [0]
• Valuation is expected to be revalued against the background of industry integration

:

• Changes in Vietnam’s policy environment
• Impact of exchange rate fluctuations
• Challenges in localized management

:

• Grasp the rhythm of capacity launch
• Raw material price fluctuations
• Changes in downstream demand

:

• Dilution of EPS by private placement
• Long investment payback period
• Capital expenditure pressure

:

1. Pay attention to the progress of private placement and the rhythm of project implementation
2. Closely track industry integration and price changes
3. Monitor the construction and production status of Vietnam projects

:

1. Adhere to the overseas expansion strategy and seize globalization opportunities
2. Strengthen technology research and development and product upgrading
3. Optimize customer structure and improve profit quality

Shengying Co., Ltd.'s RMB 1.157 billion private placement fundraising project has

:

: The weighted average expected ROI of 13.8% is highly attractive in the current market environment, and the high-return characteristics of Vietnam projects will contribute considerable returns to the company.

: The combination of overseas expansion and domestic capacity optimization not only seizes the dividends of Vietnam’s manufacturing industry but also deeply cultivates the domestic regional market, which helps the company build a global layout and sustainable development capabilities.

: It is a critical period for the optimization of the competitive pattern and the recovery of profitability in the metal packaging industry. The company is expected to fully benefit from the dividends of industry integration through capacity expansion.

Comprehensive assessment shows that this private placement fundraising project has

. It is recommended that investors pay attention to the project progress and the release of the company’s long-term value.

[0] Gilin API Data - Shengying Co., Ltd.'s financial data, stock price information, DCF valuation analysis
[1] NetEase Finance - “Shengying Co., Ltd.: Plans to Raise No More Than RMB 1.157 Billion Through Private Placement” (December 17, 2025)
[2] Securities Times - Shengying Co., Ltd.'s Investor Relations Records (December 2025)
[3] Eastmoney.com - “High Inventory + RMB 1.2 Billion Idle Funds, Shengying Co., Ltd. Plans to Raise RMB 1.157 Billion for Capacity Expansion” (December 17, 2025)
[4] NetEase Finance - Details of Private Placement Fundraising Announcement
[5] Eastmoney.com - Shengying Co., Ltd.'s Financial Data Analysis
[6] Securities Times - Shengying Co., Ltd.'s Investor Q&A Records
[7] China Galaxy Securities - “Sufficient Expectation for Price Increase of Two-piece Cans, Looking Forward to Industry Value Regression” (December 11, 2025)
[8] Jixie Mao - “Export Surge! Will Vietnam’s Furniture Manufacturing Replace China’s? (Analysis of Vietnam’s Manufacturing Costs)”