Movement Alert|Nine Dragons Paper Rises 5.24% in Regular Trading, July Industry-Wide Price Hikes Combined with Perpetual Bond Buyback Savings

Market Focus07-06

On July 6, Nine Dragons Paper rose 5.24% in regular trading, reaching HKD 7.65, with turnover of approximately HKD 71.4 million.

On the news front, China's paper industry entered a broad-based price increase wave in July, covering white cardboard, kraft cardboard, and cultural paper categories. Major paper manufacturers have issued intensive price adjustment notices. Nine Dragons Paper raised prices on its entire wood pulp cultural paper series by RMB 200/ton effective July 1, with its Chongqing base further increasing prices on two paper product categories from July 5. Industry data shows corrugated paper prices have risen approximately 11% from their April lows, with the sector sustaining a coordinated strategy of production halts and price increases through the traditionally weak season.

Additionally, the company's cash tender offer for its outstanding USD 400 million 14% senior perpetual capital securities has received approximately 99.9% commitment for tender, with completion expected to save approximately RMB 345 million in annual net interest expenses, equivalent to 8-10% of earnings forecasts for the next two fiscal years.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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