Core Viewpoint - Daiwa's research report indicates that Nine Dragons Paper Holdings benefits from a rapidly growing internal pulp supply, leading to significant cost advantages and improved profitability per ton of paper [1] Financial Performance - For the second half of the fiscal year ending June 30, the profit per ton of paper improved to 127 HKD, a substantial increase from 31 HKD in the first half and 53 HKD in the second half of the fiscal year 2024 [1] - The management anticipates stable average prices and continued improvement in profit per ton of paper for the fiscal year 2026 [1] Valuation and Recommendations - Despite improved visibility, the fiscal year 2026 price-to-earnings ratio (PER) is projected at 10 times, close to the high end of the average over the past decade [1] - Daiwa has raised the earnings per share estimates for the fiscal years 2026 and 2027 by 22% to 37% and increased the target price from 5 HKD to 5.7 HKD, while maintaining a "Hold" rating based on fair value considerations [1]
大行评级｜大和：上调玖龙纸业目标价至5.7港元 上调2026及27财年每股盈测