Core Viewpoint - The company reported a steady revenue growth for 2024, with total revenue and net profit attributable to shareholders reaching 40.73 billion and 3.10 billion yuan, respectively, reflecting year-on-year increases of 3.0% and 0.5% [2] Group 1: Financial Performance - In Q4 2024, the company achieved revenue and net profit of 9.75 billion and 640 million yuan, showing year-on-year declines of 5.7% and 32.3% [2] - The company's paper business generated revenues of 13.00 billion, 4.13 billion, 2.02 billion, 0.994 billion, and 10.93 billion yuan from non-coated cultural paper, coated paper, household paper, laminated base paper, and corrugated box paper, respectively, with year-on-year changes of -2.3%, +17.9%, -1.3%, -21.3%, and +11.5% [3] - The pulp business revenues were 1.60 billion, 4.10 billion, and 1.42 billion yuan from mechanical pulp, dissolving pulp, and chemical pulp, respectively, with year-on-year changes of -13.1%, +11.8%, and -18.9% [3] Group 2: Profitability - The overall gross margin for 2024 was stable at 16.0%, with Q4 2024 gross margin at 14.9%, reflecting a year-on-year decrease of 2.2 percentage points but a quarter-on-quarter increase of 1.0 percentage points [4] - The gross margins for the paper business were 13.4%, 14.8%, 11.9%, and 15.2% for non-coated cultural paper, coated paper, household paper, and corrugated box paper, respectively, with year-on-year changes of -3.3, +2.0, -2.5, and +0.5 percentage points [4] - The gross margins for the pulp business were 22.7%, 24.4%, and 19.8% for mechanical pulp, dissolving pulp, and chemical pulp, respectively, with year-on-year changes of +0.6, +8.3, and +2.3 percentage points [4] Group 3: Cost Management - The company’s expense ratio for 2024 was 6.5%, a decrease of 0.6 percentage points year-on-year, with sales, management, R&D, and financial expense ratios at 0.4%, 2.4%, 1.9%, and 1.8%, respectively [5] - In Q4 2024, the expense ratio was 6.7%, an increase of 0.7 percentage points year-on-year, with sales, management, R&D, and financial expense ratios at 0.5%, 2.6%, 1.5%, and 2.1%, respectively [6] Group 4: Future Outlook - In 2025, the company plans to launch several projects, including a 37,000-ton specialty paper base material project and a dissolving pulp production line relocation project, which will enhance the synergy among its three major bases [7] - By the end of 2025, the company aims to complete the first and second phases of the integrated "forest-pulp-paper" project in the Nanning area, facilitating resource integration and optimization of product structure and logistics [7]

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company reported a steady performance in 2024, with revenue and net profit reaching CNY 40.73 billion and CNY 3.11 billion, respectively, representing a year-on-year increase of 3.0% and 0.5% [5][10]. - The fourth quarter of 2024 saw a decline in revenue and net profit, with figures of CNY 9.75 billion and CNY 640 million, reflecting a year-on-year decrease of 5.7% and 32.3% [5]. - The company is expected to benefit from the synergistic effects of its three major bases, with several new production lines set to commence trial production and operation in 2025 [9][10]. Revenue Performance - The company's revenue from various segments in 2024 includes non-coated cultural paper (CNY 13.0 billion, -2.3%), coated paper (CNY 4.13 billion, +17.9%), household paper (CNY 2.02 billion, -1.3%), laminated base paper (CNY 994 million, -21.3%), and corrugated box paper (CNY 10.93 billion, +11.5%) [6]. - The pulp business generated revenue of CNY 1.6 billion from chemical pulp, CNY 4.1 billion from dissolving pulp, and CNY 1.42 billion from chemical pulp, with year-on-year changes of -13.1%, +11.8%, and -18.9%, respectively [6]. Profitability and Margins - The overall gross margin for 2024 was stable at 16.0%, with a fourth-quarter gross margin of 14.9%, showing a year-on-year decrease of 2.2 percentage points [6][7]. - The gross margins for specific products in 2024 were 13.4% for non-coated cultural paper, 14.8% for coated paper, 11.9% for household paper, and 15.2% for corrugated box paper, with notable changes in margins due to market pressures and cost efficiencies [7]. Expense Ratios - The company's expense ratio for 2024 was 6.5%, a decrease of 0.6 percentage points year-on-year, with specific rates for sales, management, R&D, and financial expenses being 0.4%, 2.4%, 1.9%, and 1.8%, respectively [8]. Future Outlook - The company plans to enhance its production capabilities with new projects in 2025, including a special paper base material project and several production lines across its three major bases, which are expected to improve operational efficiency and product offerings [9][10]. - Revenue forecasts for 2025 and 2026 have been slightly adjusted downwards to CNY 44.87 billion and CNY 51.28 billion, respectively, with net profit estimates of CNY 3.50 billion and CNY 4.12 billion [10].