SUN PAPER(SZ:002078) Xinda Securities·2025-08-31 06:05Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the report indicates a positive outlook on the company's performance and growth potential. Core Viewpoints - The company has shown an improvement in profitability despite a slight decline in revenue, attributed to cost reduction and efficiency improvements [1] - The company is expected to benefit from a recovery in pulp prices and a stabilization in paper prices, with a potential bottoming out of prices in the near term [2] - The company is advancing its production capacity plans, with significant projects expected to contribute to mid-term growth [4] Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of 19.113 billion yuan, a year-on-year decrease of 6.9%, while net profit attributable to shareholders was 1.780 billion yuan, an increase of 1.3% [1] - The second quarter of 2025 saw revenue of 9.215 billion yuan, down 10.9% year-on-year, but net profit increased by 11.5% to 894 million yuan [1] Pulp and Paper Segment - For the first half of 2025, the company reported revenues of 4.202 billion yuan from double glue paper and 2.016 billion yuan from copper plate paper, with respective year-on-year declines of 14.8% and 4.9% [2] - The gross margins for double glue paper and copper plate paper were 14.4% and 16.9%, respectively, with copper plate paper showing a quarter-on-quarter improvement [2] Waste Paper Segment - The company reported revenues of 5.221 billion yuan from box board paper and 0.072 billion yuan from corrugated paper in the first half of 2025, with year-on-year increases of 0.4% and 2.7% [3] - The gross margins for box board paper and corrugated paper were 15.6% and 2.2%, respectively [3] Capacity Expansion and Growth Outlook - By the end of 2024, the company's total production capacity is expected to exceed 12 million tons, with specific projects in Shandong and Guangxi provinces contributing to this growth [4] - The company has plans for additional projects, including a 600,000-ton chemical pulp project and a 700,000-ton paper project, which will support long-term growth [4] Profitability Forecast - The company is projected to achieve net profits of 3.58 billion yuan, 4.27 billion yuan, and 4.74 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 12.0X, 10.1X, and 9.1X [5]