Core Insights - The sales of corrugated boxes in the U.S. continue to weaken, raising concerns about a disappointing holiday shopping season this year [1] - The third quarter saw the lowest shipment volume of corrugated boxes since 2015, continuing a trend of weakness from the second quarter [1][4] - Major companies in the packaging sector have warned that economic uncertainty is impacting retail and consumer spending [1] Industry Overview - Corrugated boxes are crucial packaging materials for food, daily necessities, and e-commerce shipping, often seen as a leading indicator of retail demand [4] - Typically, October sees a surge in box orders for retailers to stock up for the holiday season, but this year is notably sluggish [4] - A media survey indicated that most box factories reported October orders as "flat or below normal levels" [4] Consumer Confidence and Economic Indicators - The U.S. consumer confidence index has dropped to a five-month low, and manufacturing activity has contracted for eight consecutive months [4] - Thomas Hassfurther, President of Packaging Corporation of America, noted a lack of economic momentum and highlighted ongoing trade uncertainties affecting business [4] Company Performance - Smurfit Westrock reported an 8.7% year-over-year decline in box volume in North America for the third quarter, leading to a stock price drop of over 12%, marking the lowest closing price since its listing in July 2024 [4] - International Paper lowered its net sales forecast for this year and 2027, with a nearly 13% drop in stock price following the announcement [5] - CEO Andy Silvernail of International Paper projected a 1% to 1.5% decline in corrugated box shipments for 2024, attributing this to trade uncertainties, weak consumer confidence, and a sluggish real estate market [5] Market Outlook - Industry experts believe that the weak demand for corrugated boxes reflects a lack of manufacturing and retail restocking activity, suggesting that this year's holiday shopping season may fall short of previous years [5] - E-commerce, department stores, and durable goods sectors are facing heightened operational uncertainties [5]

Company Overview - Hong Hing Printing Group Limited is a Hong Kong investment holding company engaged in printing business, operating through four main divisions: book and packaging printing, consumer product packaging, corrugated carton supply, and paper trading [3]. Financial Performance - As of December 31, 2024, Hong Hing Printing Group reported total revenue of 2.032 billion yuan, a year-on-year decrease of 8.05% [2]. - The company recorded a net profit attributable to shareholders of -40.1568 million yuan, representing a year-on-year decline of 132.08% [2]. - The gross profit margin stood at 13.97%, while the debt-to-asset ratio was 13.88% [2]. Stock Performance - Over the past month, Hong Hing Printing Group has seen a cumulative increase of 1.04%, but it has declined by 1.02% year-to-date, underperforming the Hang Seng Index, which has risen by 13.54% [2]. - The stock closed at 1.05 HKD per share on May 9, with an increase of 8.25% and a trading volume of 220,000 shares [1]. Valuation Metrics - The company's price-to-earnings (P/E) ratio is -20.31, ranking 29th in its industry, while the average P/E ratio for the industrial support sector is 17.88 [2]. - Comparatively, other companies in the sector have P/E ratios such as Zhongbao New Materials at 2.21, Changda Holdings at 2.67, and Shenglong Jinxiu International at 3.03 [2].