On July 21, Nine Dragons Paper rose 5.25% in regular trading, trading at HK$7.60/share, with turnover of HK$24.72 million. The paper sector strengthened broadly, with peer Lee & Man Paper gaining 7.92% simultaneously.
On the news front, the company recently disclosed earnings showing a significant turnaround, with net profit surging 225.1% year-over-year to approximately RMB 2.21 billion, while profit attributable to equity holders jumped 318.8% YoY. Additionally, the company completed a cash buyback of US$400 million in 14% senior perpetual capital securities, with approximately 99.9% of outstanding notes successfully tendered. The redemption is expected to save approximately RMB 345 million in annual interest expenses, further boosting profitability.
Industry fundamentals also provide support, as corrugated and containerboard paper prices have maintained upward momentum. Multiple brokerages maintain positive ratings, with Guotai Junan Securities assigning an Overweight rating and a target price of HK$10.51, citing sustained sector prosperity and improving unit margins as downstream paper mills maintain restocking willingness amid rising prices.
(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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