Sinolink Securities: Maintains Buy Rating on Nine Dragons Paper (02689.HK), Continuous Layout in Pulp and Paper

Zhitong Finance APP has learned that Guojin Securities has issued a research report stating that the supply-demand structure of the containerboard and corrugated paper industry has improved, and paper prices have entered an upward channel. As a leading player in containerboard and corrugated paper, Nine Dragons Paper (02689.HK) is fully benefiting; with the gradual commissioning of wood pulp production capacity, the significant increase in raw material self-sufficiency rate reduces costs, and profit elasticity is amplified during the paper price upcycle. The bank expects net profit attributable to shareholders of RMB 4.24/4.60/4.97 billion for FY27-29, up +18.51%/+8.3%/+8.1% year-on-year, with the current stock price corresponding to PE valuations of 5.6/5.1/4.8 times, maintaining a "Buy" rating.