Nine Dragons Paper announced 1HFY23 results with revenue of Rmb31.2b, 2.8% below consensus forecase. Net income was -Rmb1.4bn, missing consensus estimate of Rmb661.0m. The double miss was mainly due to destocking and rising raw material prices. Management guided for margin improvement from 2Q23 with rising ASP and easing costs. However, earnings visibility is still low given lower-than-historical price hikes and uncertainties over consumption recovery.
KEY HIGHLIGHTS Sector Automobile Weekly: BYD’s new PHEV models are emerging as game changers. Long BYD and short GAC and Zhongsheng. Maintain UNDERWEIGHT. Top picks: BYD, CATL, NXS and Minth. Results Alibaba Group (9988 HK/BUY/HK$95.15/Target: HK$151.00) 3QFY23: Solid earnings beat; consumer sentiment picked up since Feb 23. Galaxy Entertainment Group (27 HK/HOLD/HK$51.90/Target: HK$51.10) 4Q22: EBITDA loss narrowed; tapping the premium-led recovery momentum. Hong Kong Exchanges and Clearing...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Packaging paper price performance has been lacklustre since the traditional off-season began in 2Q. We expect paper prices to start rebounding in 3Q21 on demand recovery in domestic and overseas markets, supported by stable domestic OCC prices after the full ban on waste paper imports from 2021 onwards. Prefer NDP for its mid-term growth outlook and we believe its share price correction has priced in market concerns over its leverage from an aggressive capacity expansion plan. Maintain MARKET WE...
EPS forecasts were cut following the 2020 earnings season, which was a mixed bag at best. A common theme we see is the increased demand for automation, premiumisation and digitisation of sales and distribution channels to sustain margins in the face of rising input cost. We recommend buying into these themes, upstream sectors and exposure to the re-opening of the US economy from the COVID-19 lockdown.
The independent financial analyst theScreener just slightly lowered the general evaluation of NINE DRAGONS PAPER HDG. (HK), active in the Paper industry. As regards its fundamental valuation, the title confirms its rating of 4 out of 4 stars. Its market behaviour, however, has slightly deteriorated and can be now qualified as moderately risky. This risk increase, even if marginal, forces theScreener to slightly downgrade the title, which now displays an overall rating of Slightly Positive. As of...
GREATER CHINA Strategy Beware The Ides Of March?: The reflation narrative has gained momentum with the higher bond yield capping PE expansion. Focus on names with robust earnings growth instead of cyclicals. Sector Baijiu: Key takeaways from conference call with baijiu expert. Results Nine Dragons Paper (2689 HK/BUY/HK$13.74/Target: HK$16.50): 1HFY21: In line; paper price hikes to continue in 2021. Upgrade to BUY. INDONESIA Update Wijaya Karya (WIKA IJ/BUY/Rp1,825/Target: Rp2,600): Targeting Rp...
Nine Dragons Paper reported a 1HFY21 net profit of Rmb4.0b in line with a profit alert, up 76% yoy. We think its expansion plan is constructive to gain market share and enhance margins by gaining access to raw materials (pulp), despite the plan weighing on net margins in the short term. The share price correction has created a good buying opportunity as we expect paper price hikes to continue in 2021. Upgrade to BUY and raise target price to HK$16.50.
KEY HIGHLIGHTS Strategy Beware The Ides Of March? The reflation narrative has gained momentum with the higher bond yield capping PE expansion. Focus on names with robust earnings growth instead of cyclicals. Sector Baijiu Key takeaways from conference call with baijiu expert. Results Nine Dragons Paper (2689 HK/BUY/HK$13.74/Target: HK$16.50) 1HFY21: In line; paper price hikes to continue in 2021. Upgrade to BUY. TRADERS’ CORNER Sands China (1928 HK): Trading Buy Range: HK$40.15-40.20 Sinopec...
A director at Nine Dragons Paper (Holdings) Ltd bought 1,916,000 shares at 6.716HKD and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the...
EM Outperforming; Favor EM over EAFE With many global markets crumbling last week, one might assume that EM would have underperformed -- but that is not what transpired. What we saw was a decline in the US dollar which, along with improving coronavirus metrics in China, led to EM outperformance. Reiterating our 12/20/19 EM Strategy, we continue to believe EM is a better place to be than EAFE, supported by new highs in the EM vs. EAFE ratio and our ongoing belief that the US dollar is likely not...
NDP’s 1HFY20 core net profit came in better than our expectations, and are in line with consensus at Rmb2.4b, down 2.4% yoy. The earnings beat mainly came from sales volume as a result of front-loading demand in the run-up to the expected US tariff hike in Dec 19. Going forward, we expect NDP to face earnings headwinds from a hike in OCC cost and weakening demand from relocation of production outside China. Maintain SELL and raise target price to HK$5.50.
KEY HIGHLIGHTS Sector Aviation Potential inflection point as domestic capacity picks up; upgrade to MARKET WEIGHT. Lithium The sky’s the “Li-mitâ€. Property 2019 results preview: Cheap valuations amid uncertainty around coronavirus outbreak. Solar Power Price pressure continues despite Covid-19. Update Nine Dragons Paper (2689 HK/SELL/HK$8.93 /Target: HK$5.50) 1HFY20: Core net profit down 2.4% yoy, above our estimate and in line with consensus. TRADERS’ CORNER Ausnutria Dairy (...
GREATER CHINA Sector Aviation: Potential inflection point as domestic capacity picks up; upgrade to MARKET WEIGHT. Lithium: The sky’s the “Li-mitâ€. Property: 2019 results preview: Cheap valuations amid uncertainty around coronavirus outbreak. Solar Power: Price pressure continues despite Covid-19. Results Nine Dragons Paper (2689 HK/SELL/HK$8.93 /Target: HK$5.50): 1HFY20: Core net profit down 2.4% yoy, above our estimate and in line with consensus. INDONESIA Update Ciputra Development (CT...
The Wuhan coronavirus outbreak has prompted the suspension of production at paper plants and downstream industries. The resumption of production turned out slower than expected. Coupled with the sustainably weakening demand for containerboard paper as a result of the prolonged US-China trade dispute and mounting raw material cost pressure from the tightening restriction on OCC imports, this will continue to cloud the outlook for the paper sector. Maintain UNDERWEIGHT. SELL NDP and LMP.
In Jan 20, equity markets plummeted due to the outbreak of the new coronavirus. Lockdowns and extended Lunar New Year holidays across provinces are hurting the manufacturing, retail and transportation sectors. We remove Ausnutria Dairy, Wuxi Biologics and Tongcheng-elong from our BUY list and close out names that are prone to profit-taking, such as Zoomlion and Sany Heavy. Add beneficiaries of the virus outbreak ï€ CSPC and Mindray.
We maintain UNDERWEIGHT on the paper sector due to persistently weakening demand for containerboard paper as a result of the prolonged trade dispute between China and the US and mounting raw material cost pressure from the tightening restrictions on OCC imports. After the seasonal rebound in 4Q19, paper prices in China resumed their fall in January, and we expect this to trigger a stock sell-off in the near future. SELL NDP and LMP.
The Pause that Refreshes? We continue to believe the weight of the evidence points to a new leg higher for global equities, a viewpoint that is supported by the several international markets that are breaking out to new highs or making bullish inflections since our previous Int'l Compass (10/31/19). While developments continue to lean bullish, global equities have rallied substantially since the start of October, making it perfectly reasonable to expect some consolidation of recent gains which ...
We expect investors to be caught in a tug-of-war between slower economic growth and trade war optimism in November. As substantial issues from the trade war will be unresolved post-phase one agreement, we see downside risk remaining. We prefer exposure to names with resilient earnings, and add Alibaba (BABA US), Changsha Zoomlion (1157 HK), Goldwind (2208 HK) and Tongcheng-eLong (780 HK) to our BUY list amid the expected earnings rebound.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.