Group 1 - The paper sector experienced a significant upward trend, with notable stocks such as Jingxing Paper reaching the daily limit increase [1] - Rongsheng Environmental Protection saw an increase of over 5%, indicating strong market interest [1] - Other companies in the sector, including Qingshan Paper, Bohui Paper, Xianhe Co., and Hengda New Materials, also showed positive performance [1]

Group 1 - The paper industry is experiencing a significant upward trend, with notable stocks such as Jingxing Paper Industry hitting the daily limit, and Rongsheng Environmental Protection rising over 5% [1] - Other companies in the sector, including Qingshan Paper Industry, Bohui Paper Industry, Xianhe Co., and Hengda New Materials, are also seeing increases in their stock prices [1]

Report Summary 1. Report Information - Report Title: Pulp Morning Report - Research Team: Energy and Chemicals Team of the Research Center - Date: September 29, 2025 [2] 2. SP Main Contract Information - Closing Price on September 26, 2025: 5016.00 - Price Changes: -0.86957% compared to the previous day - Basis: Shandong Yinxing basis was 594, and Jiangsu-Zhejiang-Shanghai Yinxing basis was 609 on September 26, 2025 [3] 3. Import Information - Import Profits: Calculated based on 13% VAT, the import profit of Jinsi was -154.38, Xiongshi was -526.54, and Yinxing was -99.83 [4] 4. Price Information - National Average Prices: From September 22 to September 26, 2025, the national average prices of softwood pulp, hardwood pulp, natural pulp, and chemimechanical pulp remained unchanged - Shandong Regional Average Prices: Also remained unchanged during the same period - Paper Product Indexes: The indexes of cultural paper, packaging paper, and tissue paper remained unchanged - Profit Margins: The profit margins of double-offset paper, double-coated paper, white cardboard, and tissue paper remained unchanged [5] 5. Price Spread Information - Price Spreads: From September 22 to September 26, 2025, the price spreads between softwood and hardwood pulp, softwood and natural pulp, softwood and chemimechanical pulp, and softwood pulp and waste paper remained relatively stable [5]

Group 1: Alibaba Group - CMB International maintains a "Buy" rating for Alibaba-SW, raising the target price to HKD 195, citing advancements in AI infrastructure investment of RMB 380 billion and a projected 10x increase in data center energy consumption by 2032 [1] - CICC also maintains an "Outperform" rating for Alibaba-SW, increasing the target price to HKD 197, highlighting the leading position of Tongyi model ecosystem and the potential for commercial value release [1] Group 2: Kuaishou Technology - UBS maintains a "Buy" rating for Kuaishou-W, setting a target price of HKD 95.37, noting significant advancements in the 可灵 2.5 Turbo model for text understanding and video generation [1] Group 3: Xiaomi Corporation - Daiwa Securities maintains a "Buy" rating for Xiaomi Group, with a target price of HKD 76, reporting an increase in weekly electric vehicle deliveries to 10,000-12,000 units and plans to enter the European market by 2027 [2] Group 4: Longwind Pharmaceutical - China Everbright Securities International highlights Longwind Pharmaceutical's strong growth prospects, focusing on inhalation technology and drug development, with six products approved in the respiratory disease field [3] Group 5: Nine Dragons Paper Holdings - Bank of America maintains a "Buy" rating for Nine Dragons Paper, setting a target price of HKD 6.5, with a projected net profit of RMB 1.767 billion for FY25 and a 9.7% increase in sales [3] - Shenwan Hongyuan also maintains a "Buy" rating, noting significant improvements in gross profit and net profit, with expected growth in net profit for 2026-2028 [4] - Guotai Junan raises the target price for Nine Dragons Paper to HKD 7.37, citing a 9.6% increase in sales and a 1.9 percentage point rise in gross margin [4] Group 6: Xindong Company - CMB Securities strongly recommends Xindong Company, highlighting the successful public testing of "伊瑟" and a 37.74% increase in revenue from the TapTap platform [5] Group 7: Mixue Group - CITIC Securities maintains a "Buy" rating for Mixue Group, emphasizing its efficient supply chain and membership growth exceeding 300 million, with plans for expansion in Southeast Asia and new global markets [6]

Core Viewpoint - The academic forum on "Empowering Traditional Chinese Calligraphy and Painting Paper with Technology" aims to explore the latest achievements in the research, production, and application of traditional Chinese calligraphy and painting paper, emphasizing the importance of revitalizing and inheriting this historical craft [1][5][15]. Group 1: Forum Overview - The forum gathered experts and scholars from various fields related to paper technology, cultural heritage protection, and artistic creation to discuss advancements in traditional Chinese calligraphy and painting paper [3][6]. - The event was organized by the China Academy of Art and included participation from notable institutions such as the Palace Museum and Fudan University, highlighting a collaborative effort across disciplines [3][5]. Group 2: Key Discussions and Presentations - Zhang Jie from the China Academy of Art presented on the historical significance and evolution of traditional calligraphy paper, discussing its cultural implications and future applications [9]. - Xu Wenjuan from the Shanghai Museum analyzed the composition of paper used in the rare Northern Song dynasty work "Song Tuo Wang Xianzhi Book Roll," demonstrating the diversity of paper types and the challenges in restoration [11]. - Gu An from the Palace Museum shared insights on the functional pursuits and processing techniques of paper used by Emperor Qianlong, providing a modern scientific analysis of historical paper artifacts [12]. Group 3: Objectives and Future Directions - The forum's primary goal is to leverage technology to enhance the traditional paper-making process, addressing challenges such as environmental sustainability, standardization, and intelligent manufacturing [6][15]. - The discussions emphasized the need for interdisciplinary collaboration to ensure the longevity and relevance of traditional paper crafts in contemporary society [6][12].

Core Viewpoint - The company reported FY25 results that met expectations, with significant growth in both revenue and net profit, indicating strong operational performance and effective cost management [1][2]. Financial Performance - FY25 revenue reached 63.241 billion yuan, a year-on-year increase of 6.3% - Net profit was 2.202 billion yuan, up 177.3% - Net profit attributable to shareholders was 1.767 billion yuan, an increase of 135.4% after deducting approximately 400 million yuan in perpetual bond interest - Sales volume for FY25 was 21.5 million tons, a growth of 9.6% [1]. Segment Performance - In FY25, revenue from various paper products was as follows: - Corrugated paper: 33.344 billion yuan (+9.1%) - Grey bottom white paper: 6.901 billion yuan (-15.3%) - White card paper: 3.723 billion yuan (+51.2%) - Cultural paper: 5.408 billion yuan (+30.8%) - The share of cultural paper and white card paper has significantly increased, benefiting from favorable competition dynamics [3]. Production Capacity and Raw Material Advantage - As of FY25, the company had 4.73 million tons of wood pulp capacity, with plans to increase this to 7.43 million tons by FY27 - The self-produced wood pulp provides a significant cost advantage compared to external sourcing, contributing positively to FY25H2 profitability [2][4]. Market Dynamics - The demand for corrugated paper is expected to improve due to a gradual recovery in downstream demand and a slowdown in new capacity from leading manufacturers - The pricing for corrugated paper and other products has shown signs of stabilization and potential upward movement, driven by supply-demand dynamics [3][4]. Future Outlook - The company has raised its net profit forecasts for FY26-27 to 3.117 billion yuan and 3.759 billion yuan, respectively, reflecting a strong growth trajectory - The projected PE ratios for FY26-28 are 7.9, 6.5, and 5.5, indicating attractive valuation levels [4].

Group 1 - The stock of Qingshan Paper (600103) experienced a limit down today, with a turnover rate of 19.12% and a transaction amount of 1.606 billion yuan, showing a fluctuation of 9.02% [2] - The stock was listed on the Shanghai Stock Exchange's watch list due to a daily decline deviation of -9.42%, with a net sell of 54.888 million yuan from the Shanghai-Hong Kong Stock Connect [2] - The top five trading departments on the watch list had a total transaction amount of 347 million yuan, with a buying amount of 81.990 million yuan and a selling amount of 265 million yuan, resulting in a net sell of 183 million yuan [2] Group 2 - In the past six months, the stock has appeared on the watch list 13 times, with an average price increase of 2.01% the day after being listed and an average increase of 3.42% in the following five days [2] - The stock saw a net outflow of 184 million yuan in main funds today, with a significant single net outflow of 131 million yuan and a large single fund net outflow of 5.253 million yuan [2] - According to the semi-annual report released on August 26, the company achieved an operating income of 1.210 billion yuan in the first half of the year, a year-on-year decrease of 15.27%, while net profit was 56.079 million yuan, a year-on-year increase of 1.74% [2]

Group 1 - The company Xianhe Co., Ltd. (603733.SH) announced a plan to issue A-shares to specific investors, aiming to raise a total of no more than 3 billion yuan (including the amount) [1] - The net proceeds from this fundraising, after deducting issuance costs, will be used for the second phase of the high-performance paper-based new materials project in Sanjiangkou New District, Guangxi, as well as to supplement working capital [1]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has shown significant improvement in profitability due to product structure upgrades and a successful integration of pulp and paper operations. The FY2025 results met expectations, with revenue of 63.241 billion RMB, a year-on-year increase of 6.3%, and a net profit of 2.202 billion RMB, a year-on-year increase of 177.3% [5][7] - The company has a strong production capacity of over 20 million tons in paper manufacturing, which provides significant scale advantages and upward elasticity in performance [7] - The company is expected to see continued growth in net profit, with projections of 3.117 billion RMB for FY2026 and 4.425 billion RMB for FY2028, reflecting year-on-year growth rates of 76.4% and 17.7% respectively [6][7] Financial Data and Profit Forecast - FY2024 revenue is projected at 59.496 billion RMB, with a growth rate of 5%, while FY2025 revenue is expected to reach 63.241 billion RMB, reflecting a 6% increase. The net profit for FY2025 is forecasted at 1.767 billion RMB, a 135% increase year-on-year [6][7] - The company’s earnings per share (EPS) is expected to grow from 0.16 RMB in FY2024 to 0.38 RMB in FY2025, with a net asset return rate increasing from 1.66% to 3.74% [6][7] - The company’s market-to-earnings ratio is projected to decrease from 32.7 in FY2024 to 13.9 in FY2025, indicating improved valuation metrics [6][7] Product and Market Dynamics - The company has diversified its product offerings, increasing the production capacity of cultural paper and white card paper, which are expected to account for 12% of total production capacity by FY2026 [7] - The company has seen a significant increase in gross profit per ton of paper, with FY2025 figures showing a gross profit of 337 RMB per ton, up from previous years [7] - The market dynamics for boxboard and corrugated paper are improving, with expected demand growth and a reduction in supply pressure from imports, which will benefit the company's performance [7]

Core Viewpoint - Xianhe Co., Ltd. plans to issue A-shares to specific investors, aiming to raise up to 3 billion yuan for projects and working capital [1] Group 1: Issuance Details - The board of directors approved the issuance plan on September 26, 2025, allowing for up to 35 specific investors [1] - The total number of shares to be issued will not exceed 30% of the company's total share capital before the issuance, approximately 212 million shares [1] - The issuance price will be no less than 80% of the average trading price over the last 20 trading days prior to the pricing date [1] Group 2: Fund Utilization - The raised funds will be allocated to the second phase of the high-performance paper-based new materials project in Guangxi Sanjiangkou New Area, with a total investment of approximately 5.404 billion yuan, of which 2.1 billion yuan will come from the raised funds [1] - Additionally, 900 million yuan will be allocated to supplement working capital, with a total investment of 900 million yuan [1] Group 3: Company Financials - For the year 2024, Xianhe Co., Ltd.'s revenue composition is projected to be 96.05% from the paper industry and 3.95% from other businesses [1] - As of the report date, the market capitalization of Xianhe Co., Ltd. is 16.6 billion yuan [1]