Core Viewpoint - Daiwa's report indicates that Nine Dragons Paper Holdings Limited (02689) benefits from 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 2023, the profit per ton of paper improved to RMB 127, a substantial increase from RMB 31 in the first half and RMB 53 in the second half of the fiscal year 2024 [1] - Daiwa has raised the earnings per share estimates for the fiscal years 2026 and 2027 by 22% to 37% [1] Target Price and Rating - The target price for Nine Dragons Paper has been increased from HKD 5 to HKD 5.7, while maintaining a "Hold" rating based on fair value considerations [1] Future Outlook - Management anticipates that the average price will stabilize and continue to improve profitability per ton of paper in the fiscal year 2026 [1] - Despite improved visibility for Nine Dragons Paper, the current price-to-earnings ratio (PER) for fiscal year 2026 is 10 times, which is close to the high end of the average level over the past decade, suggesting that investors should wait for a better buying opportunity [1]
大和：升玖龙纸业目标价至5.7港元 维持“持有”评级