Changes in Hong Kong stocks | Nine Dragons Paper (02689) rose more than 4%, industry leaders released intensive shutdown plans to support pre-Spring Festival prices and inventory levels

The Zhitong Finance App learned that Nine Dragons Paper (02689) rose more than 4%. As of press release, it had risen 3.15% to HK$8.51, with a turnover of HK$10.884 million.

According to the news, the CICC research report points out that in December, leading paper mills continued the trend of intensive price increases in the previous two months, but the actual price increase has slowed down. Recently, leading paper mills have also concentrated on announcing maintenance plans for December and January to February next year, estimated to cut production by more than 300,000 tons, or effectively regulate supply to support prices and inventory levels before the Spring Festival. From the perspective of corporate profit per ton, the bank is optimistic about 4Q25 ton profit improvement. The differences between companies mainly depend on the product structure.

CICC said that corrugated cardboard is the most sensitive to consumption, and this round of supply expansion has come to an end. According to statistics, the total production capacity has exceeded 15 million tons in 2023-2025, of which the four leading companies account for about 40%. The expansion of the original leader will be relatively restrained in the future. Nine Dragons will suspend production expansion in 2024. It will be difficult for Shanying Anhui to start production in the short term. Lee & Man has no expansion plans yet. In 2026, Sun alone plans to release 700,000 tons of production capacity at the end of the year. The expansion of the industry has come to an end, and 2026 is expected to usher in a year-on-year restoration of production capacity utilization and price centers.