SUN PAPER(002078) 长江证券·2024-09-02 07:43Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's Q2 performance met expectations, with revenue of 10.3 billion yuan (up 8% year-on-year) and net profit attributable to shareholders of 802 million yuan (up 17% year-on-year). The non-recurring net profit was 865 million yuan (up 30% year-on-year). An asset disposal loss of 84 million yuan was recorded due to the clearance of old equipment at the Nanning base [5][6]. - The analysis indicates that the decline in operating profit was primarily due to a decrease in the profitability of cultural paper, while other products showed little change. The overall sales volume slightly increased quarter-on-quarter. The price of pulp remained high, and the profitability of pulp products is expected to remain good. Cultural paper prices stabilized in June after a slight drop in mid-April [6][7]. - Looking ahead, the third quarter is expected to be a transitional period, with improvements anticipated in the fourth quarter. The company plans to increase production and maintain profitability despite seasonal pressures in the third quarter [6][7]. Summary by Sections Q2 Performance - In Q2 2024, the company achieved revenue of 10.3 billion yuan, a year-on-year increase of 8%. The net profit attributable to shareholders was 802 million yuan, up 17% year-on-year, while the non-recurring net profit reached 865 million yuan, reflecting a 30% increase year-on-year. An asset disposal loss of 84 million yuan was recorded [5][6]. Q2 Analysis - The decline in operating profit was mainly due to reduced profitability in cultural paper, with other products showing stable profitability. The overall sales volume saw a slight increase, and the price of pulp remained high, supporting good profitability for pulp products. Cultural paper prices experienced a slight decline but stabilized in June [6][7]. Outlook for H2 - The third quarter is expected to be a transitional period, with potential improvements in the fourth quarter. The company plans to increase production and maintain profitability despite seasonal pressures in the third quarter. The new production capacities are expected to be launched in 2024 and 2025, with a focus on enhancing cost advantages and operational synergies [6][7].