Core Viewpoint - The paper industry is experiencing a price increase trend, with major companies like Lee & Man Paper (02314) and Nine Dragons Paper (02689) raising prices for multiple products starting August 1, indicating a significant acceleration in price adjustments within the sector [1] Industry Summary - The paper industry has initiated its fourth round of price increases since July, primarily affecting packaging paper prices, driven by rising costs of raw materials, energy, and logistics [1] - Year-to-date, the industry has seen two rounds of price hikes in January-March and May, reflecting a pattern of increasing pricing pressure [1] - The Guangdong Provincial Paper Industry Association has issued a proposal to promote high-quality development in the industry, aiming to counteract excessive competition [1] Company Summary - Major players such as Nine Dragons Paper and Lee & Man Paper have reported significant stock price increases, with Nine Dragons Paper up 4.06% to HKD 4.61 and Lee & Man Paper up 5.06% to HKD 2.70 [1] - According to Zheshang Securities, the paper industry, characterized by supply-demand imbalances and profitability at a low point, is expected to benefit from the "anti-involution" initiative, which may help stabilize paper prices and improve profitability for leading companies [1] - The current operational status of the paper industry shows a solid bottom, with limited new capacity expected in 2025-2026 and many paper types and operating rates at cyclical lows, suggesting potential for significant valuation elasticity for leading firms if prices return to reasonable levels [1]
造纸行业迎一轮涨价潮 理文造纸涨超5% 玖龙纸业涨超4%