[ET Net News Agency, 27 September 2019] Goldman Sachs lowered its target price for Nine
Dragons Paper (NDP)(02689) to HK$6 from HK$6.4 but upgraded its rating to "neutral" from
"sell" on valuation.
The research house believes the share price has already factored in the challenges the
company is facing following a particularly weak set of FY2019 results. Goldman does not
expect an improvement in price/spread due to trade tensions and weakness in end-demand.
Moreover, Goldman believes price cuts for containerboard paper have largely run their
course given that small to medium-sized mills are not profitable at spot prices.
The research house revised its earnings estimates by +9%/-1% for FY2020 and FY2021, to
reflect higher unit GP and lower sales volume. (KL)