SDBH(SH:600966) Southwest Securities·2026-02-24 13:35Investment Rating - The report assigns a "Buy" rating to the company [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 recovery 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]. - As a leading player in the domestic white card paper market, Bohui Paper benefits from its affiliation with the global pulp and paper giant, APP (Asia Pulp & Paper), which enhances its supply chain capabilities and profitability potential [4]. Company Overview - Bohui Paper, established in 1994 and listed in 2004, is a leading white card paper manufacturer in China. The company was acquired by APP in 2020, becoming its sole A-share listed platform for domestic pulp and paper assets [10][12]. - The company focuses on high-value-added markets and has two major production bases in Shandong and Jiangsu, with a total production capacity of 4.1 million tons [10][12]. Industry Analysis - The white card paper industry is experiencing a cyclical bottoming out, with supply growth slowing and an expected improvement in the supply-demand balance. The price of white card paper has rebounded from a low of around 4,000 yuan per ton [4][36]. - The trend of replacing plastic with paper continues to drive structural opportunities for growth in consumption, particularly in food-grade applications and exports [4][39]. Profit Forecast and Valuation - The company is projected to achieve net profits of 186 million yuan, 408 million yuan, and 551 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 54x, 25x, and 18x [4].