Group 1 - Nine Dragons Paper Holdings Limited (玖龙纸业) experienced a decline of over 4%, with a current drop of 5.26%, trading at HKD 2.88, with a transaction volume of HKD 28.84 million [1] - The company announced an expected net profit of approximately RMB 200 to 400 million for the six months ending December 2023, a significant recovery from a loss of RMB 1.389 billion in the same period last year [1] - The turnaround to profitability is attributed to an increase in product sales volume and a decrease in raw material costs, which outweighed the decline in product sales prices, leading to an increase in gross margin [1] Group 2 - Morgan Stanley noted that the first half of the year is traditionally a low-demand season for paper producers due to weak demand during holiday periods [1] - However, supply is expected to remain high, with over 4 million new paper production capacity set to commence operations in 2024, which will further intensify market supply pressure [1] - Despite limited downside potential, the ongoing supply-demand mismatch is expected to continue exerting pressure on the paper industry, particularly affecting paper prices and Nine Dragons' earnings in the second half of 2024 [1]
港股异动 | 玖龙纸业(02689)现跌超5% 预计中期扭亏为盈 大摩称供需失配将持续为纸业带来压力