Listed Paper Companies See Strong Results Thanks to a Growth in Paper Price

By CnAgri2017-09-05 09:31:41 Print In 2016, the operation revenue of 37 listed paper enterprises recorded RMB 220.414 billion, up 10.67% year on year and the growth was significant. In the first half of 2017, the operation revenue growth ranged from 10% to 40% for most paper enterprises, the net profit growth increased more or even doubled.
 
Due to the influence of rising prices of raw materials, environmental costs, higher freight and other production costs, since the fourth quarter of 2016 the prices of paper products had been rising in China. In August, paper enterprises continued to raise prices by 200-500 RMB/MT, of which the prices of corrugated paperboard and cardboard paper grew significantly. By August 29, the national average price of corrugated paperboard was 4,500 RMB/MT, up 76.8% year on year; cardboard paper was 4,933 RMB/MT, up 60.8% year on year. The average price of white board and ivory board was 4,325 RMB/MT and 6,120 RMB/MT, up 36.4% and 32.8% respectively year on year. 
 
Currently paper enterprises’ investment for the environmental protection equipment is 300 RMB/MT to 400 RMB/MT, large environmental protection equipment’s operating cost is 40 RMB/MT to 100 RMB/MT. Due to stricter environmental protection supervision, small businesses have to increase investment and paper costs will rise sharply. Unqualified small and medium paper enterprises in environmental protection have to retreat from the industry which is the the future trends for the paper industry, the concentration degree will be moving towards the leading enterprises.
 
As for the listed paper companies with a complete industrial chain, the capacity utilization is improved, output has increased; both production and marketing thrive due to a sharp growth of paper price which makes sales revenue and profit increase. BOABC believes that the listed paper companies will continue to make profits in the second half year and the full-year performance will maintain such growth.
 
Table, Listed Paper Companies’ Performance
Unit: 100 Million; %

Enterprises	Operation revenue in 2016	YoY	Operation revenue in 1H2017	YoY	Net profit	YoY
Nine Dragons Paper	320.93	4.48	191.30	17.30		60.00
Chenming Paper	229.07	13.17	137.49	29.63	17.46	85.86
Hengan International	192.77	-5.86	95.63	-0.20	18.54	13.40
Leeman Paper	164.45	11.47	97.50	36.70	18.60	53.40
Sun Paper	144.55	33.54	86.97	32.58	8.75	148.15
YFY	136.65	9.26	68.90	1.61	4.54	0.00
Shanying Paper	121.35	23.99	74.61	38.10	8.26	450.95
Huatai Paper	108.1	14.79	63.05	30.62	2.96	318.40
Vinda International	108.1	33.13	53.76	11.32	2.74	-0.20
Cheng Loong	86.47	1.32	45.57	8.63	1.53	6.74
Bohui Paper	77.96	10.46	40.58	22.06	4.05	516.88
Longchen Paper	70.12	32.89	42.63	25.07	4.10	131.00
Yueyang Forest & Paper	47.99	-19.07	25.06	4.74	0.81	496.61
Samson Paper Group	44.84	1.44		0.00		0.00
Sunshine Paper	42.23	13.35	26.95	36.70	1.68	172.00
C&S Paper	38.09	28.74	21.23	19.85	1.45	43.26
Jingxing Paper	36.81	24.61	23.50	39.61	2.36	33.26
Qifeng New Material	27.08	14.95	16.60	34.35	0.92	22.20
Yinge Industrial Investment	23.43	-16.92	13.32	11.93	-0.22	71.29
Qingshan Paper	22.78	7.85	12.69	12.62	0.64	2054.04
Zhengye International	20.74	14.71	11.58	21.25	0.87	161.69
Youyuan International	17.99	5.67	9.82	18.90	2.20	65.30
Guitang	17.92	3.29	8.54	-0.06	0.33	982.38
Guanhao High-Tech	17.4	34.36	9.17	8.84	0.34	-17.75
Mingfeng Special Paper	14.68	4.06	7.94	6.35	0.10	396.84
Hengfeng Paper	13.6	-2.48	6.72	4.94	0.46	18.95
Longchen Greentech	10.29	43.74	9.17	114.75	1.81	248.20
Kan Specialities Material	9.43	5.55	4.68	11.83	0.22	845.22
Meili Cloud	5.87	5.45	3.73	39.61	-0.03	92.71
Daddy Baby	5.11	3.98	2.60	4.62	0.08	-13.01
Yibin Paper	4.45	3077.71	4.93	309.33	1.32	701.22
Anne	4.31	-1.25	2.86	83.90	0.38	554.61
Welfare Group	3.97	0.84	1.95	-4.77	0.06	-32.89
Songyang Recycle Resources	3.75	15.32	2.03	10.24	0.30	10.62
Kaifeng New Material	3.75	12.53	1.83	10.19	0.10	88.92
Hengda New Materials	3.65	5.83	2.12	18.03	0.21	17.00
Lishu Group	3.44	7.84	1.92	11.16	0.31	122.13

Source: Annual Repots, BOABC Database