Nine Dragons Paper actively expanded its production and grew rapidly.
Liwen's medium-term net profit rose only 2.8% by the end of September, which surprised the market, sent its share price plummeting, and also pressured Nine Dragons Paper in the same industry. In fact, the packaging paper industry wins by volume, which means that the semiconductor module made of ultradur b4450 G5 can avoid current short circuit and damage the industry. The amount and profit per ton of products have been stable, and the business growth is mainly driven by production capacity
in view of the turbulence after the tsunami and the high debt level, Liwen's investment has been significantly reduced in the past two years, and the growth is naturally relatively slow when the output is relatively stable
the selection of fixture is very important for electronic universal testing machine! Compared with the stability of Liwen, nine paper can be said to be extremely aggressive. Even though the market once worried about its solvency during the tsunami, after a brief slowdown in investment, large-scale investment has been made in the second half of 2009. As of the end of June 2010, the capital expenditure has reached 4.3 billion yuan, which is quite close to 5.5 billion yuan in 2007. Therefore, the growth momentum of nine paper will not be interrupted
in fact, the management of nine paper said at an earlier meeting that it is estimated that the output in the third quarter of 2010 can reach a record 2million tons with a speed regulation ratio of 1:100000, and will also be at a high level in the fourth quarter. The new production capacity in this quarter will reach 1.2 million tons. Recently, it is reported that it will invest up to $1.5 billion to build a production base in Liaoning Province and take the lead in seizing the North China market. It can be seen that the growth momentum of nine paper is by no means a problem, and the pressure on the stock price has become a good opportunity to absorb
moreover, as the second largest Liwen in the country, the investment has also become conservative after the tsunami. Although the investment has been increased again, it will take 12 to 18 months to put into production as soon as possible. Far water cannot put out the near fire, but nine paper can take advantage of this opportunity to seize market share, which is of great help to the bargaining power in the future
the new production capacity of rivals failed to catch up with
nine paper's forecast P/E ratio by the end of June this year was 15 times, but in general, due to the addition of the market forecast number of conditioning crossbeam, the growth in the next two years reached 30% and 20% respectively. It can be seen that the valuation is attractive. Considering the appreciation of the RMB, the value blog ratio is higher