Galaxy Securities: Rise in pulp prices, optimistic about paper companies' ability to raise prices and potentially improve performance.

Galaxy Securities research report stated that with the increase in pulp prices, it is optimistic about the performance elasticity brought by paper companies raising prices. In early 2026, the paper industry has a strong intention to increase prices, and top paper companies are strengthening expectations through "one letter, multiple increases". Nine Dragons Paper started increasing the price of packaging paper by 50 yuan/ton on February 25, and the price increase letter is gradually being implemented. The industry is simultaneously implementing a dual strategy of "expanding production + technological renovation". In the household paper sector, Five Continents Specialty Paper and Hubei Jinboshi plan to add 50,000 tons/year and 60,000 tons/year of capacity, respectively, to seize the opportunity for consumption upgrading and the "paper instead of plastic" trend. In the packaging paper sector, Bengbu Samsung Paper is advancing a 150,000 tons/year renovation of specialty recycled paper, improving automation and energy efficiency, and optimizing production capacity structure.