大和:上调玖龙纸业评级至“跑赢大市” 目标价5港元

Daiwa: Raised Nine Dragons Paper's rating to “outperform the market” with a target price of HK$5

新浪港股 ·  11/13/2023 12:16

According to a research report published by Daiwa, Nine Dragons Paper (02689) was upgraded from “holding” to “outperforming the market” and downgraded the 2023-24 net value per share (Book Value per Share) of 3% to 6%, mainly reflecting the slow recovery of the company's net profit per ton, with a target price of HK$5.

According to the report, the company's valuation may have bottomed out and profitability has steadily improved. It is expected that the Group's local business is likely to be profitable in the fourth quarter of this year. At the same time, with the return of seasonal demand trends this year, with relatively healthy inventory levels in October and continuous improvement in supply and demand expectations, I believe the company's risk-return situation is on the upward trend.

The bank believes that downstream customers will be more active in supplementing wrapping paper in October to prepare for the November Double Eleven shopping festival, which means that the increase will mainly come from sales, and during the period when overall consumption is declining, this trend may continue until next year. Considering that the Group's overseas business may be dragged down, the bank expects the Group's net profit in fiscal year 2024 to be 24 yuan per ton, rising to 81 yuan in fiscal year 2025.

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