Investment Rating - The report maintains a "Positive" investment rating for the paper and light industry sector [6]. Core Insights - The light manufacturing industry index increased by 2.18%, outperforming the market by 1.30 percentage points, with the paper sub-sector rising by 1.78%, also surpassing the market by 0.90 percentage points [2][12]. - The report highlights that the cultural paper sector is entering an off-peak season, leading to a decline in pulp prices, while recommending leading companies in the integrated pulp and paper industry [4]. Summary by Sections Market Overview - The light manufacturing industry index rose by 2.18%, ranking 8th among 28 first-level industries, with the paper sub-sector increasing by 1.78% [2][12]. - The four major sub-sectors of light manufacturing, ranked by growth, are entertainment products, furniture, paper, and packaging printing, with respective increases of 5.51%, 2.03%, 1.78%, and 1.21% [12][18]. Industry Data Tracking - The report notes that the national waste paper price increased slightly by 4 CNY/ton, while the prices of various pulp types remained stable or decreased [9][24]. - The average market price for finished paper remained stable, with specific increases noted for white cardboard, which rose by 16 CNY/ton to 4095 CNY/ton [37][41]. Profitability Analysis - Profitability levels for finished paper products showed differentiation, with small paper companies experiencing increases in profitability, while larger companies faced declines [46][49]. - For instance, small enterprises in double glue paper saw an increase of 17 CNY/ton, while large enterprises experienced a decrease of 10 CNY/ton [46][51]. Production and Trade Data - The cumulative production of mechanical paper and paperboard from January to April 2025 reached 51.57 million tons, reflecting a year-on-year growth of 3.3% [55][56]. - Import volumes for paper and paperboard decreased by 10.5% year-on-year, while export volumes increased by 11.1% during the same period [55][58].

Investment Rating - The report does not explicitly provide an investment rating for the corrugated and boxboard paper industry Core Insights - The average price of corrugated paper is 2783.4 CNY/ton, up 1.4% week-on-week, but down 0.3% year-on-year [4][22] - The average price of boxboard paper is 3565.0 CNY/ton, up 0.6% week-on-week, but down 1.8% year-on-year [9][39] - The gross profit margin for corrugated paper is 13.1%, unchanged from the previous period, while the gross profit margin for boxboard paper is 21.6%, down 0.4 percentage points [9][41] - The production of corrugated paper is 481,000 tons, up 2.1% week-on-week, while boxboard paper production is 624,000 tons, up 0.4% week-on-week [9][48] - The inventory days for corrugated paper decreased by 0.8 days to 9.6 days, and for boxboard paper, it also decreased by 0.8 days to 14.4 days [35][52] Summary by Sections 1. Product Price Trends - The average price of corrugated paper is 2783.4 CNY/ton, with a week-on-week increase of 1.4% and a year-on-year decrease of 0.3% [4][20] - The average price of boxboard paper is 3565.0 CNY/ton, with a week-on-week increase of 0.6% and a year-on-year decrease of 1.8% [9][39] 2. Production and Capacity Utilization - The production of corrugated paper increased by 2.1% to 481,000 tons, while boxboard paper production increased by 0.4% to 624,000 tons [9][48] - The capacity utilization rate for corrugated paper is 63.9%, up 1.3 percentage points, and for boxboard paper, it is 68.3%, up 0.3 percentage points [28][44] 3. Cost and Profit Analysis - The gross profit for corrugated paper is 365.8 CNY/ton, up 1.4% week-on-week, while for boxboard paper, it is 769.0 CNY/ton, down 1.5% week-on-week [25][42] - The gross profit margin for corrugated paper is 13.1%, unchanged, while for boxboard paper, it is 21.6%, down 0.4 percentage points [9][41] 4. Inventory and Demand Trends - The inventory days for corrugated paper decreased to 9.6 days, and for boxboard paper, it decreased to 14.4 days [35][52] - The demand for corrugated paper is expected to decline due to the upcoming Dragon Boat Festival, with some packaging companies planning to halt operations for 1-2 days [64][65] 5. Market Outlook - The market sentiment shows 64% of participants are neutral, 7% bearish, and 29% bullish regarding future price trends [63][68] - Supply is expected to decrease slightly due to maintenance schedules at some small paper companies during the holiday [64]