SUN PAPER(SZ:002078) Guolian Minsheng Securities·2025-09-30 12:15Investment Rating - The report maintains an investment rating of "Outperform the Market" for the light industry sector [7][11]. Core Insights - The light industry sector's revenue increased by 3.59% year-on-year in Q2 2025, reaching 1580.45 billion yuan, while H1 2025 saw a 2.34% increase to 2958.02 billion yuan. However, the net profit attributable to shareholders decreased by 23.98% to 72.05 billion yuan in Q2 2025, and by 20.32% to 136.67 billion yuan in H1 2025 [4][15]. - The paper industry experienced a revenue decline of 11.91%, while the home furnishing and packaging sectors achieved double-digit growth. The custom home furnishing segment faced pressure, while the soft furnishings performed relatively better [4][9][15]. Summary by Sections Overall Light Industry - The light industry sector's revenue growth is steady, but profitability is diverging across segments. The paper segment is under pressure, while home furnishing and packaging are performing well [4][15]. - The overall gross margin for the light industry decreased by 0.41 percentage points in Q2 2025 compared to the previous year, indicating profitability challenges [15][26]. Home Furnishing - The home furnishing sector's revenue grew by 10.68% year-on-year in Q2 2025, reaching 679.39 billion yuan, but net profit decreased slightly by 0.28% to 58.84 billion yuan [31]. - Custom orders are under pressure, while soft furnishings are performing better than expected. The sector is adapting to market conditions by adjusting pricing strategies [31][32]. Paper Industry - The paper segment's revenue fell by 11.91% to 425.04 billion yuan in Q2 2025, with a net profit of -7.47 billion yuan, indicating significant challenges [9][24]. - Despite the challenges, leading companies like Sun Paper are seeing a recovery in profitability, and there are expectations for price rebounds in the future [9][15]. Packaging - The packaging sector's revenue increased by 14.98% to 338.65 billion yuan in Q2 2025, with a net profit growth of 15.07% to 15.20 billion yuan, reflecting strong performance [9][33]. - The sector is benefiting from stable demand in consumer electronics and proactive overseas expansion strategies [9][15]. Entertainment Products - The entertainment products sector's revenue grew by 1.85% to 137.36 billion yuan in Q2 2025, but net profit decreased by 10.14% to 5.47 billion yuan, indicating pressure on profitability [10][42]. - The sector is seeing growth driven by new product launches and channel promotions, particularly in personal care and AI glasses [10][42]. Export Chain - The export chain's revenue increased by 5.01% to 199.59 billion yuan in Q2 2025, but net profit decreased by 3.53% to 16.86 billion yuan, highlighting mixed performance across companies [10][51]. - Tariff uncertainties are impacting orders, but companies with established overseas production capabilities are mitigating risks effectively [10][51].