Core Viewpoint - Bank of America Securities reports that Nine Dragons Paper's performance in the second half of fiscal year 2025 exceeds expectations, primarily due to cost savings from self-supplied pulp [1] Group 1: Financial Performance - Nine Dragons Paper's self-supplied pulp production is expected to increase from 3 million tons in fiscal year 2025 to an estimated 4.7 million tons in fiscal year 2026, with further increases anticipated after 2027 [1] - The company is expected to maintain a higher dollar-denominated profit compared to peers, although expanding this advantage may face challenges [1] Group 2: Cost Management - The reduction in unit costs and profit margin expansion effects may weaken despite the increase in self-supplied pulp production [1] - To address potential wood chip shortages, Nine Dragons Paper has leased ships for importing wood chips if necessary, and procurement costs may slightly rise in the foreseeable future [1] Group 3: Valuation and Ratings - The target price for Nine Dragons Paper has been lowered by 8% to HKD 6, while maintaining a "Buy" rating, as the valuation remains attractive at 7.4 times the projected earnings for 2026 [1] - Potential demand acceleration may boost profit margins, and cost advantages are expected to help limit downside risks to earnings [1]
大行评级丨美银：下调玖龙纸业目标价至6港元 重申“买入”评级