[ET Net News Agency, 11 November 2019] Daiwa Research lowered its target price for Nine
Dragons Paper (NDP)(02689) to HK$8.7 from HK$9.5 and maintained its "outperform" rating.
The research house has recently hosted an investor luncheon for management. Daiwa
believes NDP's share price has bottomed out and expects its recent positive share-price
momentum to continue at least through early 2020.
Though margins will likely still contract in 2020 before recovering in 2021, Daiwa
believes the negatives are fully priced in, and renewed optimism over the US-China trade
war will help the stock to continue its rally.
Daiwa cut its FY2020-21 net earnings forecasts by 32-38% to reflect the drop in paper
prices and margins over the past several months. (KL)