Core Viewpoint - Nine Dragons Paper Holdings Limited (玖龙纸业) shares fell over 5%, currently trading at 8.4 HKD, with a transaction volume of 58.02 million HKD, following a downgrade in earnings forecasts by Citigroup due to unexpected price adjustments in waste paper and pulp costs [1] Group 1: Earnings Forecasts - Citigroup has lowered Nine Dragons Paper's earnings forecasts for the fiscal years 2026, 2027, and 2028 by 9%, 12%, and 7% respectively, citing high base effects from Q4 2025 and recent price adjustments due to seasonal factors and weak consumption [1] - The downgrade reflects that the stock price has already increased approximately 50% year-to-date, which is believed to have fully accounted for the strong performance expected in the first half of fiscal 2026 [1] Group 2: Rating and Market Outlook - Citigroup has downgraded the company's rating from "Buy" to "Neutral," indicating limited upside potential for the stock [1] - The firm has initiated a 30-day negative catalyst watch, anticipating a decline in the cost of old corrugated containers (OCC) during the second quarter's off-season, with expectations of a 7% year-on-year drop in net profit for the second half of fiscal 2026, reducing net profit per ton from 129 RMB to 101 RMB compared to the same period last year [1]
港股异动 | 玖龙纸业(02689)跌超5% 国内OCC成本将于淡季下滑 花旗认为公司股价上行空间有限