On June 30, Nine Dragons Paper rose 5.17% in regular trading, trading at HKD 6.92/share, with turnover of HKD 139 million. The rally was driven by a dual catalyst: a company-wide price hike across all ten production bases and near-completion of its perpetual securities buyback.
On June 29, the company announced price increases of RMB 50/ton across its Dongguan, Chongqing, Leshan, Tianjin, Hebei, Taicang, Quanzhou, Hubei, Shenyang, and Beihai bases for its full range of kraft liner and corrugated paper products, effective from July 10. Certain kraft liner grades at the Hubei base saw increases of up to RMB 80/ton.
Simultaneously, the company disclosed early tender results for its USD 400 million 14% senior perpetual capital securities buyback. Approximately USD 74.3 million (18.6%) was validly tendered during the early bird period. With related holders (holding approximately 81.3% of outstanding principal) committing to tender all their securities after the early bird period, the company expects at least 99.9% to be validly tendered before the July 3 expiry. Upon completion, the buyback is projected to save approximately RMB 400 million in annual interest expenses.
(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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