Jinwu Financial News | According to the Zheshang Securities Research Report, Nine Dragons Paper (02689) FY2024H1 (corresponding to 2023H2 natural year) achieved revenue of 30.61 billion yuan (-1.9% YoY), net profit of 290 million yuan (YoY +121.1%), an increase of 1,287 billion yuan over FY23H2, an increase of 1,681 billion yuan over FY23H1, and an increase of 1,681 billion yuan over FY24H1. The bank expects prices and profits to recover year-on-year in 24 as the import shock stabilizes and domestic demand recovers in '24.
The bank mentioned that FY24H1's capital expenditure is 6.6 billion yuan (year-on-year - 4.2 billion yuan), and the estimated capital expenditure for FY24H2 is 6.4 billion yuan. Some of the new papermaking production capacity has been postponed or cancelled. In the future, it is expected to build 1.7 million tons of wood pulp in Beihai and 420,000 tons of wood fiber production capacity in Malaysia, which is expected to support the increase in profits of high-end products.
The bank expects the company to achieve revenue of 645/792/83 billion yuan in the 24/25/26 fiscal year, +14%/+23%/+5% year-on-year, and net profit of 7.82/18.95/3.124 billion yuan, respectively, +133%/+142%/+65% year-on-year, corresponding to PE 19/8/5X, respectively, to maintain a “buy” rating.