HK Stock Market Move | ND PAPER (02689) is now falling more than 4%, with annual net profit increasing by over 60%. Morgan Stanley says that rising paper production continues to drag down paper prices.

ND PAPER (02689) is currently down over 4%, with a drop of 4.07% to HKD 3.3 as of the time of writing, with a trading volume of HKD 26.726 million. In terms of news, ND PAPER has released its mid-year performance, with revenue reaching RMB 33.465 billion, an increase of 9.3% year-on-year; net profit is RMB 470 million, a growth of 60.6%. Citigroup stated that ND PAPER's performance in the first half of the 2025 fiscal year is consistent with the previously announced performance expectations. Due to weaker consumption prospects in the second half of the 2025 fiscal year, the bank has lowered its profit forecast for ND PAPER by 27%. Morgan Stanley noted that despite weakened industry demand and declining profit margins, there was still a new production capacity of 5.6 million tons added last year. In 2025, the bank expects another 3.5 million tons of new production capacity to be gradually put into operation, with most coming from small and medium-sized enterprises. The increase in paper production will continue to weigh on paper prices. However, improvements in product mix and better cost structure should help ND PAPER partially alleviate the weak prices this year.