Huatai Research lifted its target price for Nine Dragons Paper (NDP)(02689) to HK$6.1 from HK$5.9 and maintained its "sell" rating.
The research house revised up NDP's net dollar margin for FY2020/21 (June year-end) by 105%/29% to RMB258/164/t, given better-than-expected margin in 1H FY2020, cost reduction from the tax cut for fiber imports from the US, and near-term price strength from the temporary supply constraint.
Huatai lowered its FY2020 volume by 3% to 14.8mn tonnes due to the slower-than-expected demand recovery and periodic production disruption. Hence, it raised FY2020/21 net profit by 100%/34%.
WoW WoW星期三：健康網購產品低至$99 (只限今天)► 立即行動
