UBS: Maintains "Buy" rating on ND PAPER (02689) with target price lowered to HKD 4.58.

UBS released a research report stating that it maintains a "buy" rating on ND PAPER (02689), but has reduced its net profit forecast for the fiscal years 2025 to 2027 by 35% to 48%, to reflect the issuance of $400 million perpetual capital securities in June last year. The target price has also been lowered from HK$5.06 to HK$4.58. The report quoted Nine Dragons Prosperity, expecting a net profit of 650 to 700 million RMB in the first half of the fiscal year 2025 (ending in mid-December 2024), a year-on-year increase of 1.1 to 1.3 times. After deducting the profit attributable to holders of perpetual capital securities of 199.5 million RMB, it is expected that the profit attributable to equity holders will be 430 to 480 million RMB, a year-on-year increase of 40% to 65%. The Company's preliminary performance for the first half of fiscal year accounts for 33% to 36% of market expectations for its 2025 fiscal year forecast. In addition, the Company has not provided updated outlook or guidance.