Ge Long Hui A P P·2025-08-21 07:33Core Viewpoint - The report from Cinda Securities indicates that Wuzhou Special Paper's net profit attributable to shareholders for H1 2025 is 122 million yuan, a year-on-year decrease of 47.7%, with Q2 2025 net profit at 57 million yuan, down 42.2% year-on-year. The company is expected to see a recovery in profitability as the industry outlook improves [1] Group 1 - The decline in profitability is primarily attributed to the full production of the Hubei base, changes in product structure, and pressure from certain paper types such as heat transfer paper [1] - Future prospects are optimistic due to bottoming out of pulp prices and seasonal demand recovery, with expectations for marginal improvement in packaging paper prices in Q3, alongside the gradual entry of low-cost pulp into inventory [1] - The food card paper and cultural paper segments are expected to face pressure from intensified competition, with both volume and price anticipated to decline year-on-year, although the company's self-produced pulp cost optimization is expected to stabilize profitability in Q2 [1] Group 2 - The market for glassine, drawing paper, and industrial liner paper is expected to remain stable in terms of volume and price [1] - The heat transfer paper segment is projected to experience short-term pressure on profitability due to supply-demand mismatches [1] - The Hubei base's full production is expected to maintain steady profitability for packaging paper [1] Group 3 - As of H1 2025, the company's inventory, accounts receivable, and accounts payable turnover days are 50.15, 44.93, and 37.64 days respectively, showing a year-on-year increase of 10.25 days for inventory, a decrease of 11.25 days for accounts receivable, and a decrease of 5.39 days for accounts payable [1]