Tianfeng Securities: Initiate coverage on Nine Dragons Paper (02689) with a "buy" rating and a target price of 6.6-8 Hong Kong dollars.

According to the Wise Finance APP, Tianfeng Securities released a research report stating that they have initiated coverage on Nine Dragons Paper (02689) for the first time, giving it a "buy" rating. They forecast that the company's net profit attributable to shareholders for FY26-28 will be 31.2/34.9/38.4 billion yuan respectively, with corresponding PEs of 8.6X/7.7X/7.0X. Using the relative valuation method, the company's current PE and PB ratios are at historical lows. Considering the steady progress of the company's pulp and paper integration, it is expected that profitability will continue to improve during the current bottom-up cycle. Additionally, taking into account the discount of H-shares compared to A-shares, the company is given a PE ratio of 10X-12X for 2026, with a target price of 6.6-8.0 Hong Kong dollars per share.