Shenwan Hongyuan Research: maintain a "buy" rating for Sun Paper, cost control better than peers

Shenwan Hongyuan Research pointed out that Sun Paper's new production capacity is about to be put into operation intensively, which will increase the company's bottom line profit. In the medium and long term, the company's diversified layout of pulp and paper products resists cyclical disturbances, optimizes the integration of forest and pulp to reduce costs, and the counter-cyclical capacity investment will harvest the improvement in economic conditions. Outstanding strategic vision continues to contribute excess returns. The management is the industry benchmark, the talent team is stable, the team is cohesive, and the employees are highly self-driven. Lean management improves production efficiency, and cost control is better than peers. In addition, the company is promoting a dual model of self-operated forests and cooperation with local people to accelerate the planting area of more than 10,000 hectares of forests annually, strengthening the advantages of integrated forest and pulp. Maintaining a "buy" rating.