Core Viewpoint - The stock of Nine Dragons Paper Holdings Limited (02689) has shown a significant increase, with a rise of 3.15% to HKD 8.51, driven by market expectations regarding price adjustments and production plans in the paper industry [1] Industry Summary - Major paper manufacturers have continued the trend of price increases observed in previous months, although the actual implementation of these price hikes has slowed down [1] - Leading paper manufacturers have announced maintenance plans for December and the first two months of the following year, estimating a production reduction of over 300,000 tons, which may effectively regulate supply and support price and inventory levels before the Spring Festival [1] - The industry is expected to see an improvement in profit per ton in Q4, with differences among companies primarily based on product structure [1] Company Summary - Nine Dragons Paper is expected to pause capacity expansion starting in 2024, while other leading companies like Shanying and Lee & Man have limited short-term expansion plans [1] - The current phase of supply expansion in the industry is nearing its end, with a total of over 15 million tons of new capacity expected to be operational between 2023 and 2025, of which four leading companies account for approximately 40% [1] - By 2026, the industry is anticipated to experience a recovery in capacity utilization rates and price levels compared to previous years [1]

Core Viewpoint - The report from CICC indicates that leading paper manufacturers are continuing the trend of price increases observed in the previous months, although the actual implementation of these price hikes has slowed down [1] Company Summary - Nine Dragons Paper (玖龙纸业) shares rose over 4%, currently trading at HKD 8.51 with a transaction volume of HKD 10.4884 million [1] - The company is expected to see an improvement in profit per ton in Q4 2025, with differences among companies primarily based on product structure [1] Industry Summary - Leading paper manufacturers have announced maintenance plans for December and the first two months of next year, estimating a production cut of over 300,000 tons, which may effectively regulate supply and support price and inventory levels before the Spring Festival [1] - The sensitivity of corrugated box paper to consumer demand is highlighted, with the current supply expansion phase nearing its end [1] - From 2023 to 2025, the total new capacity added exceeds 15 million tons, with four leading companies accounting for approximately 40% of this capacity [1] - Future expansions by existing leaders are expected to be relatively restrained, with Nine Dragons pausing expansion from 2024, and other companies like Shanying and Lee & Man also showing limited expansion plans [1] - The industry is anticipated to see a recovery in capacity utilization rates and price levels by 2026, as the expansion phase concludes [1]