DJ C&S Paper Expected to Face Continued Profitability Pressure -- Market Talk
0602 GMT - C&S Paper will likely face continued profitability pressure in 2H, after severe margin contraction weighed on its 2Q profit, Citi says, as it keeps a sell rating on the stock. The company's 2Q net profit declined 49% to significantly below expected levels, mainly due to aggressive price discounts and promotional spending to reduce stock, Citi notes. It reckons the situation is unlikely to improve in 2H given the slowing economic recovery in China, while raw-material costs are expected to rise. Shares are 0.7% lower at CNY17.23. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
September 07, 2021 02:02 ET (06:02 GMT)
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