Core Viewpoint - Xianhe Co., Ltd. has signed a significant investment agreement with the government of Hejiang County, Sichuan Province, for a bamboo pulp paper integrated high-performance paper base new materials project, with a total investment of approximately 11 billion yuan [1][5]. Investment Details - The project will be constructed in two phases, each with an investment of about 5.5 billion yuan, aiming to produce 400,000 tons of bamboo pulp and 600,000 tons of high-performance paper base new materials annually [2][5]. - The project is expected to generate an annual output value of approximately 5.15 billion yuan and provide around 2,000 jobs upon completion of the first phase [5][6]. Historical Investments - Since 2020, Xianhe Co., Ltd. has announced significant investments totaling 50.9 billion yuan across various projects in Guangxi, Hubei, and Shandong, in addition to the current Sichuan project [2][9]. - Notable projects include a 21.9 billion yuan expansion in Guangxi and a 10 billion yuan project in Shishou, Hubei [8][9]. Financial Position - As of the end of Q1 this year, the company's debt-to-asset ratio stood at 65.49%, marking a historical high, with interest-bearing liabilities of 12.146 billion yuan against cash holdings of only 895 million yuan [4][11]. - The company's profitability has shown volatility, with net profits fluctuating from 1.017 billion yuan in 2021 to 1.004 billion yuan in 2024, reflecting a year-on-year change of 41.76%, -30.14%, -6.55%, and 51.23% respectively [11]. Market Position - Xianhe Co., Ltd. is recognized as one of the largest specialized manufacturers of high-performance paper base functional materials in China, with a diverse product range and significant market share in various segments [10]. - The company holds nearly 45% market share in the tobacco industry paper segment and about 25% in the thermal paper market, indicating a strong competitive position [10].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Viewpoints - Pulp prices are stabilizing, and new capacity additions are expected to enhance bottom-line profits, presenting a good opportunity for bottom positioning [6] - The company is well-positioned to benefit from the potential rebound in pulp prices, which could act as a catalyst for growth [7] - The company has a strong integrated supply chain advantage, with significant investments in forestry and pulp production [7] Financial Data and Profit Forecast - Total revenue is projected to reach 41,650 million yuan in 2025, with a year-on-year growth rate of 2.3% [2] - Net profit attributable to the parent company is expected to be 3,537 million yuan in 2025, reflecting a year-on-year increase of 14.1% [2] - Earnings per share are forecasted to be 1.27 yuan in 2025, with a projected PE ratio of 11 [2] Market Data - As of June 20, 2025, the closing price of the stock is 13.31 yuan, with a market capitalization of 36,801 million yuan [3] - The company has a price-to-book ratio of 1.3 and a dividend yield of 2.25% [3] Additional Insights - The company has recently launched a special paper project with a capacity of 34,000 tons, and further capacity expansions are planned for the future [6] - The company is actively managing its forestry resources, with plans to increase plantation areas significantly, which will strengthen its competitive position in the market [7]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The pulp market may show a pattern of counter - arbitrage and fluctuate slightly stronger due to the adjustment of deliverable products. After the suspension of the "Bratsk" brand deliverable for bleached sulfate softwood pulp futures, the overall price center of the futures market may rise, and the near - far month spread may widen [78]. Summaries by Relevant Catalogs Industry News - As of June 19, 2025, the pulp inventories in Changshu Port, Qingdao Port, and Gaolan Port in China all increased, with a 0.7% increase in Changshu Port, 1.2% in Qingdao Port, and 2.6% in Gaolan Port. The total inventory of mainstream ports reached 220.8 million tons, a 1.1% increase from the previous period [6]. - The Shanghai Futures Exchange announced the suspension of the warehousing of the "Bratsk" brand deliverable for bleached sulfate softwood pulp futures [6]. - Shandong Sun Paper and its subsidiaries won new industrial land in Beihai, Guangxi and Yanzhou, Shandong [6]. Market Data Market Trends - The basis of Silver Star on June 20, 2025, was 930 yuan/ton, with an 8.39% increase from the previous period and a 124.64% increase year - on - year. The basis of Russian Needle was 130 yuan/ton, with a 124.14% increase from the previous period and a 195.59% increase year - on - year. The price difference between Silver Star and Russian Needle was 800 yuan/ton, unchanged from the previous period but a 45.45% increase year - on - year [14]. - The 09 - 11 month spread on June 20, 2025, decreased by 50% from the previous period, and the 11 - 01 month spread was - 82 yuan/ton, a 7.89% decrease from the previous period [19]. Fundamental Data Price - The price differences between softwood and hardwood pulp (Silver Star - Goldfish, Russian Needle - Goldfish) decreased. On June 20, 2025, the price difference between Silver Star and Goldfish was 1950 yuan/ton, a 2.5% decrease from the previous period but a 160% increase year - on - year. The price difference between Russian Needle and Goldfish was 1150 yuan/ton, a 4.17% decrease from the previous period and a 475% increase year - on - year [26]. - The import profit of Silver Star was positive but continued to decline this week. The hardwood pulp Star had no quotation in June, and partial supply was expected to resume in July [33]. - The prices of imported softwood pulp such as Silver Star, Cariboo, Northwood, and Lion decreased slightly compared to the previous period. The prices of imported hardwood pulp such as Goldfish, Star, and Bird remained stable [35][42]. - The price of Venus was 5100 yuan/ton on June 20, 2025, a 2% increase from the previous period but a 6.42% decrease year - on - year. The price of Kunhe was 3900 yuan/ton, unchanged from the previous period and a 1.3% increase year - on - year [46]. Supply - In April 2025, the European port inventory decreased by 12.77% month - on - month, and the global pulp out - port volume decreased by 18.3% month - on - month and 10.89% year - on - year [50]. - In May 2025, the pulp import volume showed a differentiated performance. The softwood pulp import volume decreased by 4.75% month - on - month, while the hardwood pulp import volume increased by 7.84% month - on - month [53]. Demand - The capacity utilization rates of white cardboard, household paper, offset paper, and coated paper decreased to varying degrees on June 20, 2025. The capacity utilization rates of white cardboard, household paper, offset paper, and coated paper were 72.2%, 62.1%, 54.6%, and 56.55% respectively [58]. - The prices of white cardboard, household paper, offset paper, and coated paper remained stable this week, but the market trading was light, and the raw material procurement enthusiasm was not high [61][64]. - The profit of household paper decreased this period, while the profits of other paper types increased to varying degrees [67]. Inventory - The total inventory of mainstream ports in China reached 220.8 million tons on June 20, 2025, a 1.05% increase from the previous period and a 21.12% increase year - on - year. The inventories in Qingdao Port, Changshu Port, and Gaolan Port all increased [75]. - The warehouse receipt quantity of pulp in warehouses was 23.53 million tons on June 20, 2025, a 1.22% decrease from the previous period and a 50.27% decrease year - on - year. The warehouse receipt quantity in factories was 1.63 million tons, unchanged from the previous period and a 49.25% decrease year - on - year [69]. Operation Suggestions - The pulp market may fluctuate slightly stronger due to the adjustment of deliverable products. The suspension of the "Bratsk" brand deliverable may increase the willingness of buyers to take delivery and raise the overall price center of the futures market. The market may show a counter - arbitrage pattern [78].

1. Report Information - Report Type: Pulp Daily Report [1] - Date: June 11, 2025 [2] 2. Industry Investment Rating - No information provided. 3. Core Viewpoints - The new round of imported pulp quotes remained stable, the port destocking speed was still slow, the implementation effect of downstream price increase letters was average, and the shutdown of the 690,000 - ton per - annum softwood pulp mill Joutseno in Finland due to poor orders boosted the market trend, leading to a wide - range rebound in pulp prices [8]. 4. Summary by Section 4.1 Market Review and Operation Suggestions - **Pulp Futures**: The previous settlement price of the 09 - contract of pulp futures was 5,256 yuan/ton, and the closing price was 5,284 yuan/ton, a rise of 0.53%. The 01 - contract and 05 - contract also showed different price changes [7]. - **Spot Market**: The intended transaction price range of softwood pulp in the Shandong wood pulp market was 5,280 - 6,750 yuan/ton, and the low - end price remained stable compared with the previous trading day. The quotation of Shandong Yinxing was 6,150 - 6,170 yuan/ton [7]. - **Supply and Demand**: Chilean Arauco announced its June quotes, with Yinxing at 740 US dollars/ton and Jinxing at 620 US dollars/ton, unchanged from the previous period. The shipment volume of softwood pulp from 20 major pulp - producing countries in April decreased by 7.2% year - on - year, and the cumulative year - on - year increase from January to April was 1.4%. China's pulp imports in May were 3.02 million tons, a month - on - month increase of 4.3% and a year - on - year increase of 6.9%. As of June 5, 2025, the weekly pulp inventory in major regions and ports decreased by 2.6% month - on - month. The downstream market had a clear demand for improving profitability, but the follow - up of terminal orders was limited, and the raw material procurement mentality was cautious [8]. 4.2 Industry News - Jiulong Paper is promoting a forest - pulp - paper integration project in Beihai, Guangxi. The first production line is planned to be put into operation in June 2025, and the other two production lines will be put into operation in stages in September and December. The project aims to achieve full production in 2025, with a total investment of 35 billion yuan, covering an area of 5,120 mu. After the project is put into operation, the annual output value is expected to reach 70 billion yuan, and the annual tax will increase by 3 billion yuan. The pulp production capacity is expected to reach 14.4 million tons [9]. 4.3 Data Overview - The report presents multiple data charts, including pulp futures price, spot price, price difference, inventory, and other data, with data sources mainly from Wind, Zhuochuang Information, and the Research and Development Department of Jianxin Futures [7][11][20]

Report Information - Report Name: Pulp Daily Report [1] - Date: June 6, 2025 [2] - Research Team: Energy and Chemical Research Team [4] Industry Investment Rating - Not provided Core Viewpoints - The new round of imported pulp quotations remained stable, the de - stocking speed at ports was still slow, the downstream base paper enterprises successively issued price increase letters but the implementation effect was average, and the fundamentals changed little. Pulp maintained a low - level range - bound adjustment [7] Summary by Directory 1. Market Review and Operation Suggestions - Pulp futures contract 09 had a previous settlement price of 5,228 yuan/ton and a closing price of 5,218 yuan/ton, with an overall increase of 0.19%. The intended transaction price range of softwood pulp in the Shandong wood pulp market was 5,400 - 6,750 yuan/ton, and the low - end price remained stable compared with the previous trading day's closing price. The quotation of Shandong Yinxing was 6,300 yuan/ton [7] - Chile's Arauco announced its June quotations: Yinxing at 740 US dollars/ton and Jinxing at 620 US dollars/ton, which were flat compared with the previous period [7] - According to PPPC data, the shipment volume of softwood pulp from the world's 20 major pulp - producing countries in April decreased by 7.2% year - on - year, and the cumulative increase from January to April was 1.4% year - on - year. China's pulp imports in April were 2.89 million tons, a month - on - month decrease of 11.1% and a year - on - year decrease of 10.2%. As of May 29, 2025, the weekly pulp inventory in major regions and ports decreased by 2.2% month - on - month [7] - The downstream market had a clear demand for improving profitability, but the follow - up of terminal orders was limited, and the raw material procurement mentality was cautious [7] 2. Industry News - On June 5, the single - machine commissioning of the PM2 white cardboard project of Liansheng Pulp and Paper was launched. This project was designed by China Haisum Changsha Company and was currently in the single - machine commissioning stage. The coated board production line BM2 and the bleached chemi - thermomechanical pulp (BCTMP) production line were supplied by Valmet and were expected to be put into operation in the third quarter of 2025 [8] - Liansheng Pulp and Paper (Zhangzhou) Co., Ltd., established in 2020, was a large - scale forest - pulp - paper integrated pulp and paper enterprise. Its main products included chemical pulp, chemi - mechanical pulp, white cardboard, cultural paper, and household paper. The company covered an area of more than 300 hectares and had more than 3,000 employees [8] 3. Data Overview - Multiple data charts were provided, including cross - period spreads, import softwood pulp spot prices, pulp futures prices, pulp spot - futures price differences, needle - broadleaf price differences, warehouse receipt totals, domestic main port pulp inventories, European main port wood pulp inventories, paper prices and price differences, and the US dollar - RMB exchange rate. The data sources were mainly Wind and Zhuochuang Information [13][14][16]

Core Viewpoint - The article emphasizes the transition of the paper industry from "manufacturing products" to "manufacturing for good," highlighting the importance of sustainable development and ecological value in the industry [1][10]. Group 1: Industry Transformation - The paper industry is undergoing a systemic transformation, driven by the dual goals of quality and sustainability, as it prepares to be included in the national carbon market [1][7]. - The concept of "ecological value closed loop" is introduced, upgrading the previous "forest-pulp-paper integration" model to enhance sustainability [2][4]. Group 2: Carbon Asset Management - Carbon assets are emerging as a core asset alongside capital and technology, and early investment in carbon asset management can provide a competitive advantage [2][4]. - As of the end of 2023, the company has 29.3 million hectares of self-owned forest land, with a cumulative carbon storage of 43.7 million tons, laying a solid foundation for carbon sink development [2][4]. Group 3: Strategic Framework - The company has established a 2030 sustainable development strategic framework, focusing on strategic leadership, ecological collaboration, and innovation-driven approaches to build a carbon asset management system [2][4]. - The company aims to integrate various chains, such as supply chains and value chains, to enhance competitiveness and resilience [5]. Group 4: Collaborative Ecosystem - The company promotes vertical integration of the industry chain and horizontal ecological collaboration to create an innovative ecosystem, facilitating cooperation among various stakeholders [3][4]. - The establishment of platforms like the "China Paper Industry Sustainable Development Forum" fosters collaboration among government, industry associations, and research institutions [4]. Group 5: Future Outlook - The company believes that true commercial benevolence involves integrating social responsibility into business strategies, transforming challenges into opportunities for innovation [8][10]. - The future of sustainable development in the paper industry lies in adhering to green circular development models while promoting ecological transformation across the industry [10].

Group 1: Corporate Governance and Market Dynamics - The Chinese government has issued opinions to enhance the modern enterprise system, focusing on improving corporate governance structures and supporting both state-owned and private enterprises [1] - The opinions emphasize the importance of independent directors and the introduction of institutional investors with over 5% shareholding to enhance corporate governance [1] - A total of over 500 listed companies in the A-share market are set to distribute more than 58.5 billion yuan in cash dividends, indicating a strong trend in shareholder returns [2] Group 2: Automotive Industry Trends - The automotive market is experiencing heightened competition, with a product competitiveness index of 85.5 for April 2025, driven by consumer stimulus policies and promotional activities [3] - Car manufacturers are actively implementing strategies to increase market share, including trade-in subsidies and promotional financing options [3] Group 3: Fund Management and Investment Trends - The issuance of equity funds is on the rise, with 16 new floating management fee funds set to launch, indicating a strong interest from investors [4] - The private equity industry has seen its management scale exceed 20 trillion yuan, attributed to a recovering issuance market and improved performance [5] Group 4: Commodity Prices and Industry Outlook - The tungsten industry is witnessing a price surge, with black tungsten concentrate prices reaching 165,500 yuan per ton, driven by supply-demand dynamics [6] - The paper pulp market is entering a phase of tentative recovery, with domestic pulp production capacity increasing as companies pursue integrated projects [13] Group 5: Currency and Market Impact - The renminbi has reached a six-month high against the US dollar, which is expected to benefit the Chinese stock market as capital flows shift towards non-US assets [7] - Goldman Sachs reports that a 1% appreciation of the renminbi could lead to a 3% increase in Chinese stock prices, highlighting the positive correlation between currency strength and market performance [7] Group 6: Corporate Leadership Changes - Longi Green Energy has announced significant management changes, with founder Li Zhenguo stepping back and his daughter being nominated for the board, indicating a strategic shift in leadership focus [9] - The company aims to leverage dual leadership in strategy and technology to navigate the challenges in the photovoltaic industry [9]

Investment Rating - The report maintains a "Positive" investment rating for the paper and light industry sector [6] Core Viewpoints - The light manufacturing industry index increased by 0.87%, underperforming the market by 0.25 percentage points, while the paper sub-sector declined by 0.47%, underperforming the market by 1.59 percentage points [2][13] - The report highlights that the cultural paper sector is entering an off-season, with pulp and paper prices declining [4] - Recommendations include leading companies in the integrated pulp and paper industry such as Sun Paper (002078, Buy), and special paper leaders like Xianhe Co. (603733, Buy) [4] Summary by Sections Market Review - The light manufacturing industry index rose by 0.87%, while the paper sub-sector fell by 0.47%, ranking 12th among 28 first-level industries [2][13] - The four major sub-sectors of light manufacturing ranked by growth were furniture, packaging and printing, cultural and entertainment products, and paper, with respective increases of 1.67%, 1.09%, 0.21%, and a decrease of 0.47% in the paper sector [2][13] Industry Chain Data Tracking - The report notes a decline in wood pulp product prices, with the average market price for double glue paper dropping by 48 CNY/ton, copper plate paper by 10 CNY/ton, and white card paper by 41 CNY/ton [39] - The profitability of wood pulp products is declining, with small paper companies experiencing a decrease of 78 CNY/ton for double glue paper, while large companies saw a decrease of 48 CNY/ton [49] - Mechanized paper and board production for the first quarter of 2025 reached 38.19 million tons, a year-on-year increase of 3.8% [58] Raw Materials - Domestic waste paper prices slightly increased by 1 CNY/ton, while foreign waste prices remained stable [24] - The report indicates that the inventory of wood pulp at two major Chinese ports reached 1.81 million tons, a 1% increase from the previous month [25][33] Profitability Levels - Profitability for wood pulp products is declining, with small companies seeing significant drops in profitability across various paper types [49] - The report highlights a divergence in profitability for boxboard paper, with low-grade boxboard increasing by 7 CNY/ton while high-grade boxboard decreased by 8 CNY/ton [56]

Investment Rating - The report maintains a "Positive" investment rating for the paper and light industry [6] Core Viewpoints - The light manufacturing industry index increased by 3.02%, outperforming the market by 1.02 percentage points, with the paper sub-sector rising by 2.17%, also surpassing the market by 0.16 percentage points [2][13] - The report highlights that the cultural paper sector is entering an off-peak season, leading to a decline in pulp and paper prices [4] - The report recommends leading companies in the integrated forest-pulp-paper industry, such as Sun Paper (002078, Buy), and suggests focusing on leading special paper companies like Xianhe Co. (603733, Buy) and Huawang Technology (605377, Buy) [4] Summary by Sections Market Review - The light manufacturing industry index rose by 3.02%, while the paper sub-sector increased by 2.17%, ranking 9th among 28 first-level industries [2][13][20] Industry Chain Data Tracking - The report notes a decline in wood pulp product prices, with domestic waste prices slightly increasing by 1.5 CNY/ton, while foreign waste prices decreased by 5-10 USD/ton [9][24] - The average market price for finished paper products saw declines: double glue paper down by 38 CNY/ton, copper plate paper down by 45 CNY/ton, and white card paper down by 48 CNY/ton [39][40][42] Profitability Levels - Profitability in cultural paper is diverging, with small paper companies seeing an increase of 25 CNY/ton in double glue paper, while large companies experienced a decrease of 43 CNY/ton [48][49] - The profitability of packaging paper is declining, with white card paper profitability down by 20-48 CNY/ton [48][51] Production Data - The cumulative production of mechanical paper and paperboard in the first quarter of 2025 reached 38.19 million tons, a year-on-year increase of 3.8% [57] - The report indicates that the import volume of paper and paperboard decreased by 8.2% year-on-year, while the export volume increased by 10.7% [57]

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company reported a revenue of 9.898 billion yuan in Q1 2025, a year-on-year decrease of 2.8%, while the net profit attributable to the parent company was 0.886 billion yuan, down 7.3% year-on-year but up 37.9% quarter-on-quarter [1] - The company's profitability is improving due to the synchronized increase in pulp and paper prices, with a balanced business development [1][2] - The company is advancing its projects in Nanning and is expected to achieve a fully integrated pulp and paper production model [3] - The gross profit margin for Q1 2025 was 15.8%, showing a quarter-on-quarter increase of 0.9 percentage points [4] Summary by Sections Financial Performance - In Q1 2025, the company achieved a net profit of 0.886 billion yuan, with a gross profit margin of 15.8% [1][4] - The company expects net profits for 2025-2027 to be 3.62 billion, 4.28 billion, and 4.73 billion yuan respectively, with corresponding P/E ratios of 10.8X, 9.2X, and 8.3X [4][6] Market Trends - The prices of cultural paper and white card paper have increased since November 2024, with Q1 2025 average prices for double glue, copper plate, and white card paper rising by 3.8%, 4.4%, and 2.7% respectively [2] - The company anticipates continued improvement in profitability in Q2 2025, supported by low costs and new production lines coming online [2][3] Production Capacity - By the end of 2024, the company's total production capacity exceeded 12 million tons, with pulp and paper capacities reaching 5 million tons and 7.29 million tons respectively [3] - The company is accelerating the planting of forest land in Laos, expecting to add over 10,000 hectares annually, which will support its pulp and paper production [3]