Daiwa released a research report sayingluckyducknodepositbonus2022, maintain the "Buy" rating of Nine Dragons Paper (02689) and maintain the performance forecast unchanged, that is, the second half of fiscal year 2024luckyducknodepositbonus2022Net profit per ton is 48 yuan; net profit per ton for the 2025 - 2026 fiscal year will reach 145 yuan to 161 yuan, and the target price will be raised from HK$5 to 5.luckyducknodepositbonus2022.5 Hong Kong dollars. Although the Chinese New Year is the traditional off-season for paper industry, Nine Dragons Paper still achieved strong sales and capacity utilization near full capacity in April, indicating strong growth in the company's sales share.
The bank said that although paper prices are showing a downward trend despite the slow recovery of the mainland economy, Nine Dragons Paper's net profit per ton is expected to continue to record a slight quarterly expansion in the second quarter of this year. This is mainly due to the decline in waste paper prices in the mainland faster than paper prices; with the growth of sales, the utilization rate of capacity is higher; and factors related to the improvement of internal efficiency. The bank also expects that as the mainland's plastic ban will take effect in 2025, it believes that the supply and demand dynamics of the paper industry will improve in fiscal year 2025. Nine Dragons Paper's net profit per ton by the end of 2024 will reach 100 yuan (the same below) to 200 yuan.
