Stock Analysis & Valuation Sunrise Group Company Limited (002752.SZ)

• Previous Close: $6.56
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	23.35	256
Intrinsic value (DCF)	5.48	-16
Graham-Dodd Method	4.12	-37
Graham Formula	3.66	-44

Strategic Investment Analysis

Company Overview

Sunrise Group Company Limited stands as a prominent Chinese metal packaging specialist with over three decades of industry expertise. Headquartered in Fuzhou, the company operates as a comprehensive packaging solutions provider, focusing primarily on food and beverage containers for both domestic and international markets. Sunrise Group's core offerings include sophisticated two-piece and three-piece cans, aluminum bottles, and various closure systems, serving major beverage brands across China. Beyond traditional manufacturing, the company has strategically expanded into value-added services including beverage filling operations, packaging design, smart marketing solutions, and anti-counterfeiting technologies. As a subsidiary of Shengxing Holdings, Sunrise leverages vertical integration from design to distribution, positioning itself at the intersection of packaging manufacturing and consumer goods innovation. The company's evolution from Shengxing Group Co., Ltd. to Sunrise Group reflects its modernization journey in China's rapidly growing packaging sector, which benefits from rising consumer spending and premiumization trends in the beverage industry. With established operations spanning production, R&D, and logistics support, Sunrise Group represents a key player in Asia's packaging ecosystem.

Investment Summary

Sunrise Group presents a mixed investment profile with moderate growth potential tempered by sector-specific challenges. The company demonstrates reasonable financial health with CNY 423 million net income on CNY 7.13 billion revenue, translating to a 5.9% net margin. With a market capitalization of CNY 5.51 billion and a low beta of 0.272, the stock exhibits defensive characteristics relative to broader market volatility. Positive operating cash flow of CNY 524 million supports ongoing operations, though significant capital expenditures (CNY -314 million) indicate active capacity investments. The dividend yield appears modest at CNY 0.10 per share. Primary investment considerations include Sunrise's exposure to China's consumer cyclical sector, which faces economic headwinds, and competitive pressures in the fragmented packaging industry. The company's debt level of CNY 1.56 billion against cash reserves of CNY 1.03 billion warrants monitoring, though current liquidity appears adequate. Investors should weigh the company's established market position against margin compression risks in contract packaging.

Competitive Analysis

Sunrise Group competes in China's highly fragmented metal packaging market, where scale, technological capability, and customer relationships determine competitive positioning. The company's primary competitive advantage stems from its integrated service model combining packaging design, manufacturing, filling services, and smart marketing solutions—a differentiation from pure-play manufacturers. This vertical integration allows Sunrise to capture more value from client relationships and respond to evolving brand needs. However, the company faces intense competition from both large multinational packaging corporations and numerous regional Chinese manufacturers. Sunrise's focus on beverage packaging aligns with growing demand for canned beverages in China, but the sector remains price-sensitive with thin margins. The company's technological investments in anti-counterfeiting and traceability solutions provide some differentiation, though these features are becoming industry standards. Geographic concentration in China represents both an advantage (deep local market knowledge) and a risk (limited diversification). Compared to global peers, Sunrise operates at a smaller scale, potentially limiting R&D spending and international expansion capabilities. The company's relationship with parent Shengxing Holdings may provide financial stability but could also create governance complexities. Overall, Sunrise maintains a solid regional position but lacks the global scale of leading competitors, making it vulnerable to industry consolidation trends.

Major Competitors

• Grand Packaging Holdings Limited (2006.HK): Grand Packaging is a significant competitor in metal packaging across China and Southeast Asia. The company benefits from extensive production scale and diverse product portfolio spanning food, beverage, and personal care packaging. However, Grand Packaging faces margin pressures from commodity price fluctuations and intense competition in the commodity packaging segment. Compared to Sunrise, Grand Packaging has broader geographic reach but may lack Sunrise's integrated service model combining design with manufacturing.
• China Foods Limited (2319.HK): While primarily a food manufacturer, China Foods represents both a customer and potential competitor through backward integration in packaging. The company's scale as a state-owned enterprise provides advantages in procurement and distribution. However, as a diversified food company, packaging represents a smaller focus compared to Sunrise's specialized approach. China Foods may prioritize cost efficiency over packaging innovation, creating opportunities for specialized players like Sunrise.
• Cranswick plc (CGP.L): Cranswick operates in food packaging with growing international presence, though limited direct competition in China. The company excels in sustainable packaging solutions and has strong relationships with Western retailers. Cranswick's sophisticated food safety standards and traceability systems represent competitive strengths that Sunrise must match for international clients. However, Cranswick's primary focus on food rather than beverage packaging creates differentiation from Sunrise's core market.
• Ball Corporation (BLL): As a global leader in metal packaging, Ball Corporation represents the premium benchmark with advanced technological capabilities and massive scale. Ball's innovation in lightweighting and sustainability sets industry standards that regional players like Sunrise must follow. However, Ball's focus on large multinational clients creates opportunities for Sunrise to serve local Chinese brands with more customized solutions. Ball's global footprint provides diversification benefits that Sunrise lacks.
• Crown Holdings, Inc. (CCK): Crown Holdings is another global packaging giant with significant presence in beverage cans worldwide. The company's technological leadership in can design and manufacturing efficiency creates high barriers to entry. Crown's global scale enables cost advantages that regional players like Sunrise cannot match. However, Crown's focus on standardized solutions for global brands may create openings for Sunrise to serve niche markets and provide more flexible, integrated services to local Chinese beverage companies.