China's Nine Dragons Paper annual profit surges on strength in kraftliner product sales

By Reuters News


Overview

  • China packaging paper maker's annual revenue grew 18.6% yr/yr, driven by higher sales volume

  • Net profit attributable to equity holders rose 102.6% yr/yr, basic EPS up 100%

  • Company benefited from cost control and premium product offerings amid industry recovery


Outlook

  • Company did not provide specific financial guidance for revenue or profit in the press release


Result Drivers

  • SALES VOLUME - Co said sales volume rose 14% yr/yr to a record 24.5 mln tonnes, boosting revenue

  • HIGHER SELLING PRICES - Co said average selling price increased 4% yr/yr, supporting revenue growth

  • PRODUCT MIX OPTIMIZATION - Co said increased sales proportion of high-end kraftliner products boosted profit contribution


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

RMB 75 bln

FY Net Income Attributable

RMB 3.58 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the paper packaging peer group is "buy"

  • Wall Street's median 12-month price target for Nine Dragons Paper (Holdings) Ltd is HK$8.80, about 48.4% above its September 23 closing price of HK$5.93

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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