HK Stock Market Move | ND PAPER (02689) opens more than 5% higher, with expected mid-term net profit to increase by over 1.1 to 1.3 times year-on-year.

ND PAPER (02689) opened more than 5% higher, rising 5.43% to HKD 3.3 as of the time of publication, with a turnover of HKD 85.63 million. On the news front, ND PAPER announced that the group is expected to achieve a net profit of approximately RMB 650 million to RMB 700 million for the six months ending on December 31, 2024, representing an increase of 110% to 130% compared to the same period last year's net profit of RMB 303 million. The increase in net profit is mainly due to an increase in sales volume during this period and a greater decrease in raw material costs compared to the decrease in product sales prices, leading to an increase in gross profit. Four hundred million US dollars of perpetual capital securities were issued in June 2024, with the holders of the perpetual capital securities expected to account for a profit of RMB 199.5 million during this period. Therefore, the group is expected to achieve a net profit of approximately RMB 430 million to RMB 480 million for this period for the equity holders, representing an increase of 40% to 65% compared to the same period last year's equity holders' profit of RMB 292.4 million.