Core Viewpoint - Shaoneng Co., Ltd. has shown a mixed performance in stock trading, with a year-to-date increase of 31.50% but a recent decline in the last five, twenty, and sixty trading days [1][2]. Group 1: Stock Performance - As of September 26, Shaoneng's stock price was 5.08 CNY per share, with a market capitalization of 5.489 billion CNY [1]. - The stock has experienced a year-to-date increase of 31.50%, but has seen declines of 0.59% over the last five days, 3.97% over the last twenty days, and 8.63% over the last sixty days [1]. - The company has appeared on the trading leaderboard twelve times this year, with the most recent appearance on July 10, where it recorded a net buy of -16.8299 million CNY [1]. Group 2: Company Overview - Shaoneng Co., Ltd. was established on June 14, 1993, and listed on August 30, 1996. Its main business is in power generation, with non-electric businesses including machinery, pulp and paper products, and building materials [2]. - The revenue composition is as follows: electricity 38.09%, pulp and industrial paper 23.76%, automotive parts 17.19%, eco-friendly paper products 12.05%, others 5.66%, and thermal energy 3.24% [2]. - The company is classified under the public utility sector, specifically in hydropower generation, and is involved in clean energy and biomass energy concepts [2]. Group 3: Financial Performance - For the first half of 2025, Shaoneng reported a revenue of 2.335 billion CNY, reflecting a year-on-year growth of 6.95%, while the net profit attributable to shareholders was 95.903 million CNY, a decrease of 42.43% year-on-year [2]. - The company has distributed a total of 2.122 billion CNY in dividends since its A-share listing, with 212 million CNY distributed over the last three years [3]. - As of June 30, 2025, the number of shareholders was 79,900, a decrease of 8.19%, with an average of 13,333 circulating shares per person, an increase of 7.44% [2].

Group 1 - The company reported approximately 4.484 billion yuan in operating revenue and about 0.141 billion yuan in net profit attributable to shareholders for the first half of 2025 [1] - As a major domestic enterprise in cultural paper and commodity pulp, the company has a production capacity of 1.4 million tons per year for paper and 400,000 tons per year for commodity pulp [1] - The company emphasizes clean production and energy conservation, having been awarded the national "Green Factory" title [1] Group 2 - The company is expanding its market share in high-margin products such as special needle pulp and is accelerating the construction of fluff pulp and specialty pulp projects to cultivate new growth drivers [1] - In production management, the company is focusing on stabilizing and exceeding production targets, enhancing new product development, and maximizing system efficiency [2] - The company has signed contracts for carbon sink projects covering an area of 11.11 million acres and has a cumulative project reserve of 82.4679 million acres [2] Group 3 - The company is developing a standardized approach to carbon sink project development, including a manual and a smart management platform to enhance data collection and project management [2] - The company is actively exploring bio-based new materials and bioenergy to create new growth areas [2] - The company has made significant progress in project reserves and contract signings in the carbon sink business, with a steady advancement of market layout [2]

Core Viewpoint - The 2025 Shanghai International Paper Exhibition will be held at the Shanghai New International Expo Center, featuring an exhibition area of 120,000 square meters, with an expected attendance of 100,000 visitors and 1,200 exhibitors, highlighting the importance of outstanding exhibition design for participating companies [1] Group 1: Exhibition Goals and Budget Planning - Companies must clearly define their exhibition objectives, such as launching new packaging paper or enhancing their green brand image through sustainable paper production [3] - Budget allocation is crucial, with recommendations to spend 40%-50% on design and construction, 20%-30% on exhibits, and 10%-20% on personnel and promotion [4] Group 2: Design Key Points - The exhibition style should reflect the company's product characteristics, such as using an art gallery theme for artistic paper or an industrial design for industrial paper [6] - Space layout should include designated areas for product display, meetings, and interactive experiences to enhance visitor engagement [9] Group 3: Material Quality and Construction - It is essential to select materials that meet safety and environmental standards, ensuring structural integrity and health safety during the exhibition [11] - Construction should adhere strictly to design specifications, with a detailed schedule to manage the setup process effectively [13][14] Group 4: Product Arrangement - Products should be displayed according to their characteristics, with lightweight artistic papers suspended and heavier materials stacked for visibility [15] - Special display props can enhance product features, such as showcasing waterproof capabilities through transparent containers [16]

Group 1 - The core viewpoint of the report indicates that the pulp and paper industry is experiencing a bottoming out of profitability, with costs stabilizing and paper prices showing slight recovery in Q1 2025 [1][2] - The report highlights that the overall pulp price is expected to maintain a low-level fluctuation, with domestic demand remaining weak while international prices are experiencing increases due to maintenance shutdowns in overseas pulp mills [2][3] - The cultural paper segment is seeing a gradual recovery in profitability, with major players like Sun Paper benefiting from strategic raw material management and cost control [3][5] Group 2 - The white card paper prices are showing signs of stabilization, with a slight increase in Q1 2025 due to supply disruptions from major producers [4][5] - The special paper segment is witnessing an expansion of leading companies' market share, although prices are under pressure due to weak demand in certain categories [4][5] - The waste paper segment is experiencing price fluctuations, with overall profitability showing improvement, particularly for companies like Nine Dragons Paper [6][7] Group 3 - The report anticipates that the profitability of paper companies may continue to face pressure in Q2 2025 despite cost optimization efforts, with limited new capacity expected from leading firms [7] - Companies to watch include Sun Paper and Xianhe Co., which are expected to see improvements in profitability, along with others like Huawang Technology and Wuzhou Special Paper [8]

Investment Rating - The investment rating for the paper industry is "Positive" [2] Core Viewpoints - The paper industry is experiencing a bottoming cycle with insufficient upward momentum, leading industry leaders to focus on extending their supply chains and enhancing differentiated competitive advantages [12] - The industry is expected to continue facing supply-demand pressures in 2025, with a sustained bottoming of profit cycles as leading companies innovate and expand their scale and differentiation advantages [12] - Major companies are actively expanding their overseas market presence to absorb production capacity [12] Summary by Sections Pulp and Paper Sector - Cost improvements and a slight recovery in paper prices are leading to profit recovery, with Q4 2024 pulp prices hitting a bottom and costs stabilizing [3] - In Q1 2025, low-cost pulp gradually entered inventory, and paper prices saw a slight increase, with companies expected to maintain low costs and moderate profit improvements [3][18] - The domestic pulp market is experiencing price fluctuations, with expectations of continued low-level oscillations in Q2 2025 [19] Cultural Paper - Profitability is gradually recovering, with leading companies performing well despite market challenges [4] - Average prices for double glue paper and copper plate paper in Q4 2024 and Q1 2025 were 5228 and 5435 CNY/ton respectively, showing year-on-year declines but some recovery in Q1 2025 [22] - Companies like Sun Paper are leveraging raw material strategies and cost control to improve profits [22] White Card Paper - Prices are stabilizing at the bottom, with a slight improvement in profitability [23] - The average price for white card paper increased from 4195 CNY/ton in Q4 2024 to 4307 CNY/ton in Q1 2025, benefiting from supply disruptions [23] - Companies are expected to face increased supply pressures in 2025 due to new capacities coming online [23] Specialty Paper - Leading companies are expanding their advantages and market shares [24] - Prices for specialty paper categories are expected to decline due to short-term supply-demand pressures, but some categories are showing signs of recovery [24] - Companies like Xianhe and Wuzhou are expected to benefit from increased production capacity [24] Waste Paper Sector - Prices are fluctuating, with a recovery in profitability observed [26] - The average price for waste paper in Q4 2024 was 1530 CNY/ton, showing a year-on-year increase, while boxboard and corrugated paper prices also saw slight improvements [26] - The overall profitability of waste paper companies is expected to remain under pressure in Q2 2025 despite cost optimizations [26] Investment Recommendations - Focus on companies with integrated pulp and paper operations and improving profitability, such as Sun Paper and Xianhe, as well as those recovering profitability like Huawang Technology and Wuzhou Specialty Paper [8]