HK Stock Market Move | ND PAPER (02689) rises more than 5%, the momentum of boxboard paper is expected to continue to rise, and the improvement in supply and demand is expected to increase the company's profit elasticity.

ND PAPER (02689) rose more than 5%, rising 5.04% to HKD 7.5 as of the time of publication, with a turnover of HKD 1.17 billion. On the news front, Zhongtai pointed out that at the end of June, the company's top ten base prices rose collectively, driving the industry to collectively raise prices. In addition, in the first week of July, the ton price of boxboard paper/corrugated paper rose by +34/+51 yuan compared to the previous month, maintaining a rising trend, and the price increases cover costs, with this round of price increases expected to cover until mid-July and downstream customers following suit, releasing a strong signal for coordinated price increases. Looking ahead to the second half of 2026, the peak season for packaging paper will continue in August, driven by the high prosperity of industries such as AI, leading to an increase in export demand, and the industry's price increases are expected to accelerate towards vertical industry chains, potentially expanding paper price increases to boost ton profit recovery. Zhongtai stated that ND PAPER's repurchase of high-yield perpetual bonds improves capital structure and profit elasticity can be expected. Considering that the company currently has no plans to build papermaking capacity, the peak of capital expenditure has passed, and depreciation pressure has eased. At the same time, this repurchase of high-yield perpetual bonds is beneficial for clearing market doubts, significantly reducing interest expenses and optimizing the company's capital structure. In the context of marginally improving supply and demand structure, the company's profit elasticity can be expected.