The Zhitong Finance App learned that UBS released a research report stating that it maintains the “buy” rating of Nine Dragons Paper (02689.HK), with a target price of HK$11.82. The company's net profit for the 2026 fiscal year ended the end of June rose 103% year on year to 3.58 billion yuan, close to the company's profit guideline limit; paper sales rose 14% year on year to 24.5 million tons, slightly higher than the bank's forecast of 24.4 million tons; gross margin increased 3.1 percentage points to 14.6% year on year, higher than the bank's forecast of 14.1%. Profit growth was driven by a faster increase in average sales prices than rising fiber and energy costs, reversing the pressure on the industry's overall profit margins. Management indicated that paper sales remained flat in FY2027, and pulp production increased by 1 million tons to 5.8 million tons over the same period last year.

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