SDBH(SH:600966) Southwest Securities·2026-02-24 11:00Investment Rating - The report gives a "Buy" rating for Bohui Paper Industry [4]. Core Insights - The white card paper industry is expected to see a marginal improvement in supply-demand dynamics as supply growth slows down, potentially leading to a rebound in profitability per ton [4]. - Demand for high-end white card paper and exports remains strong, supported by incremental demand from coffee and tea beverages, indicating stable growth in the demand side [4]. - Bohui Paper, as a leading player in the domestic white card paper market, benefits from its backing by the global pulp and paper giant, Golding Group, enhancing its supply chain capabilities and profitability potential [4]. Company Overview - Bohui Paper Industry, established in 1994 and listed in 2004, is a leading white card paper manufacturer in China. The company was acquired by Golding Group in 2020, becoming its only A-share listed platform for domestic pulp and paper assets [10][12]. - The company focuses on various paper products, including white card paper, cultural paper, boxboard, and gypsum face paper, with white card paper being its core product [10][12]. - Bohui has production bases in Shandong and Jiangsu, continuously optimizing its product structure and expanding into high-value markets to increase market share [10][12]. Industry Analysis - The white card paper industry is currently experiencing a cyclical bottom, with expectations for marginal improvement in profitability as supply growth slows and demand stabilizes [4][36]. - The industry has faced significant supply-demand imbalances in recent years, leading to price declines, but recent initiatives to reduce supply and improve efficiency are expected to support price recovery [4][36]. - The trend of replacing plastic with paper continues to drive demand for white card paper, particularly in food packaging and environmentally friendly applications [39][42]. Profit Forecast and Valuation - The report forecasts net profits for Bohui Paper to be CNY 186 million, CNY 408 million, and CNY 551 million for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 54x, 25x, and 18x [4].