JINGXING PAPER(002067)2024-12-23 08:57Production Capacity and Market Demand - The company has an annual production capacity of 1.35 million tons of packaging paper, 800,000 tons of recycled pulp, 120 million square meters of cardboard, and 188,000 tons of tissue paper [3] - Due to e-commerce promotions and holiday consumption during Q4, the demand for packaging paper is relatively strong, and the price of finished paper has increased [3] - The demand for packaging paper is significantly influenced by macroeconomic factors, and the industry is expected to recover if exports and domestic demand stabilize [3] Malaysia Phase I Project - The Malaysia Phase I project, with an 800,000-ton pulp and paper capacity, was formed due to the "waste import ban" [3] - The project faced low capacity utilization in Q3, affecting profits, but utilization improved significantly in Q4, especially since November [4] - The Malaysia Phase I project bears the amortization of some public facilities built in advance for the Phase II project, which will affect the profitability of Phase I until Phase II is operational [4] Malaysia Phase II Project - The Malaysia Phase II project is currently in preparation, with funding mainly from bank financing [4] - Major expenditures for Phase II will be concentrated in 2025 and 2026, accounting for 30% to 40% of the total [4] - Once Phase II is operational, finished paper can be shipped back to the domestic market, expanding the sales radius and providing packaging paper for domestic companies building factories overseas [4] Investment and Financial Performance - The company's external investments aim to smooth out the cyclical nature of its main business, and it has established a cycle of investment-management-exit-reinvestment [5] - The company has recovered nearly 70% of its investment in the Jinpu Guotiao Fund, with an optimistic overall return outlook [5] - The company's convertible bonds are in their final two years, and the company hopes to achieve a certain proportion of conversion, with financial preparations in place if full conversion is not achieved [5] Product and Market Development - The company uses high-quality raw materials, such as US waste, to produce products with higher burst and compression resistance [4] - The Malaysia recycled pulp products are mainly imported for domestic use, particularly in producing high-end boxboard paper, with increased volumes of AAJ and SJ boxboard paper [4] - The company is focusing on promoting SJ boxboard paper, which has high burst resistance, and is exploring new applications for recycled pulp in industries like paper bags, cement bags, and decorative materials [4]