HK Stock Market Move | ND PAPER (02689) falls nearly 4%; persistent weak consumption trends expected; Citi cuts company's target price.

ND PAPER (02689) fell nearly 4%, down 3.94% as of press time to HK$4.63, with turnover of HK$16.874 million. On the news front, Citi previously issued a research report stating that it cut ND PAPER's target price from HK$8.8 to HK$5.8, reflecting weak potential profit margins, while maintaining a "Neutral" rating due to relatively low valuation. The bank noted that the target price cut was mainly due to expectations of persistently weak consumption trends, as August retail sales growth fell short of expectations, and recent pre-sale property reforms extend property sales until after completion; it expects China's pulp costs may decline for the remainder of the year due to increased industry supply, as companies pursue vertical integration models like Nine Dragons'. Recently, ND PAPER released its annual results for the year ended June 30, 2026. The group recorded revenue of approximately RMB 75 billion (same unit below), up 18.6% year-on-year; profit attributable to equity holders of the company was RMB 3.581 billion, up 102.62% year-on-year. CICC believes that ND PAPER's FY26 results are in line with its earlier profit alert and the bank's expectations. However, considering that the company's redemption of perpetual bonds has led to high debt and financial expenses, the bank cut its FY27 net profit forecast by 5% to RMB 4.26 billion.