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Citibank has raised the investment rating of LEE & MAN PAPER to "Buy," increasing the target price from HKD 2.4 to HKD 4.2, representing a 75% increase. This adjustment is based on the judgment that the profitability cycle of the paper industry has bottomed out and is gradually improving. Although the profit growth of LEE & MAN PAPER may not match that of ND PAPER, the overall profitability of the industry is not expected to deteriorate in the second half of 2025. The report indicates that the profit recovery of LEE & MAN PAPER will mainly rely on the rebound in profit margins from the containerboard and tissue paper businesses, with sales expected to grow by 5.9% in the second half of 2025
Morgan Stanley expects ND PAPER's net profit in the first half of 2026 to increase by 216% year-on-year, reaching RMB 2.15 billion to 2.25 billion, slightly higher than its forecast of RMB 2 billion, overall in line with expectations. Although the first half of the year is a traditional off-season for consumption, which may lead to a slight correction in paper prices, due to product structure optimization and improved cost performance, it is expected that annual profitability will remain robust. Morgan Stanley has set a target price of RMB 6 for ND PAPER, with a rating of "in line with the market."
Nine Dragons Paper Holdings Limited anticipates a profit of RMB2,150 million to RMB2,250 million for the six months ending December 31, 2025, marking a 216.0% to 230.7% increase from RMB680.3 million in the same period last year. This growth is attributed to higher sales volumes and prices, along with reduced raw material costs, leading to a significant rise in gross profit.
SDHG(00412) rose 25.18%, with a trading turnover 90.1 Million HKD, and a year-to-date rose 27.9%. AFFLUENT FDN(01757) rose 18.86%, with a trading turnover 12.8 Million HKD, and a year-to-date rose 35.5%. NOVOSENSE(02676) rose 13.14%, with a trading turnover 234.7 Million HKD, and a year-to-date rose 22.3%.
The Hang Seng Index closed at 26,458 points, down 251 points or 0.9%; the Hang Seng Tech Index reported 5,738 points, down 86 points or 1.5%. Alibaba fell over 3%, with a transaction volume of CNY 276.134 billion. China Life, Nanshan Aluminum International, ND PAPER, CHINA TAIPING, and NCI reached new highs, with active trading
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