subject: Securities Times: Paper plate compensatory growth opportunities for large - paper plates, paper - Paper Industry [print this page] Securities Times: Paper plate compensatory growth opportunities for large - paper plates, paper - Paper Industry
First three quarters of 2008 Papermaking Industry boom high, industry sentiment index from the fourth quarter plunged to 99 124.5, a record low. But the first quarter of this year, the chain has shown signs of the good, such as industry sales rise, high raw material inventory slow digestion, gross margin, white cards and Coated Paper Some of the manufacturers began to raise prices, fully illustrate this point. Supply and demand due to expected further improvement in low range and raw material prices, analysts most promising sectors for further recovery in the economy. Some recent paper
continuous price increase. In the mid to late 5, coated paper, coated white Cardboard And Offset tentative price increases were part of the initial response of downstream users, domestic major companies will join forces in June to continue the process, the relevant price increase plan late last month to users, price increase of 200 yuan / ton. Paper is the initial access to pricing power, supporting industries in the recovery process, the main drivers of price increases including: pulp price increases to inventory to be completed, the market demand is slowly picking up.
Pulp prices are expected to fluctuate within a relatively low level. Global pulp prices are rising in North America from Asia to Europe and then to spread, mainly from the rising power: China, covering a large scale paper mill stock; global paper demand in parts of slow recovery. Guoxin Securities, said global Wood pulp Stock has the highest number of days when the 50-day fast down to 35 days in April close to the historical average, but further increases in pulp prices could lead to closures and cut-off complex production capacity, while South America is still a low-cost capacity expansion, Pulp prices may be inhibited in the medium to long term. With the economy gradually recovered
industry, industry in the second quarter and second half results are expected to continue to rise. With the rebound in prices of raw materials upstream and downstream needs of the slow recovery, rising paper prices is expected to become stronger and stronger. Again, market driven warming of the atmosphere of recovery in capacity utilization, production and sales which will increase to some extent. In this case, the Industrial Securities estimates the industry is expected second quarter profit growth of 5 percent or more. From the valuation of view, A paper plate stock valued at 1.2-2.1 times book value, an average of 1.4 times the lower end plate valuation in the industry, less than Steel 20%, 35% of building materials. View of the paper plate and gradually warming up in the situation of post-performance and low valuations, Central China Securities upgraded to "synchronize the market" investment rating. But analysts also said the basic paper plate is A-share market in the compensatory growth of investment products, investor expectations can not be too high.
Varieties from specific investment perspective, CITIC Securities proposed capacity expansion options are limited, demand is driven by the impact of macroeconomic uncertainty of the advantages of smaller species of paper, and then configure the more dominant species accounting for a large paper company, focused on paper recommended Bo industry, Hop Hing Packaging, Chenming Paper and Sun Paper. Societe Generale Securities recommends layout coated paper, white Cardboard , A larger proportion of the company culture paper, recommended Sun Paper, Bo Paper, Chenming Paper.
