Yamato: Hibiki Long Paper (02689.HK) target price lowered to HK$5, downgrade rating to "hold"

The Wisdom Finance app learned that Daiwa Securities released a research report stating that the stock of Nine Dragons Paper (02689.HK) has risen by over 70% in the past three months, believed to be driven by speculative trading based on the market's expectation of it being a primary beneficiary of anti-internal competition policies. It is believed that the stock has now exceeded its fundamental value, and recommends investors to wait for a better buying opportunity. The firm has lowered its earnings forecast for Nine Dragons Paper for the fiscal years 2025 to 2027 by 11-29% to reflect weak demand or supply. However, the firm has raised the target price-earnings ratio of the company to 12 times (originally 8 times) and raised the target price from 4 HK dollars to 5 HK dollars, but downgraded the rating from "buy" to "hold".