freeultimatexpoker| Daiwa: Raise Nine Dragons Paper's target price to HK$5.5 to maintain its "Buy" rating

Daiwa published a research report stating that although the Chinese New Year is after the Chinese New Year, the paper industryfreeultimatexpokerHowever, Nine Dragons Paper still recorded 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, 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. Mainly due to the decline in waste paper prices in the mainland faster than paper pricesfreeultimatexpoker; As sales increase, capacity utilization becomes higher; factors that improve 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 to 200 yuan.

In addition, Daiwa maintains its performance forecast for Nine Dragons Paper, that is, net profit per ton for the second half of fiscal year 2024 will be 48 yuan; net profit per ton for fiscal years 2025 to 2026 will range from 145 yuan to 161 yuan. The bank raised its target price for Nine Dragons Paper from HK$5 to HK$5freeultimatexpoker.5 Hong Kong dollars, maintaining a "Buy" rating.