On July 2, Nine Dragons Paper rose 5.56% in regular trading, reaching 7.21 HKD per share, with turnover of approximately 84.75 million HKD.

The rally was driven by two key catalysts. First, a brokerage report highlighted that the paper industry sustained its shutdown-plus-price-hike strategy through June, with containerboard and corrugated paper prices rising sharply against seasonal norms. In the second week of June, containerboard and corrugated paper prices rose 35 RMB and 48 RMB per ton respectively on a week-over-week basis, with corrugated base paper prices up approximately 11% from their April lows — a pricing momentum rarely seen during off-season in the past three years. The company itself announced price increases of 50 RMB/ton across all ten production bases effective July 10.

Second, the company's USD 400 million perpetual bond buyback received approximately 99.9% valid tender commitments. Upon completion, the move is expected to save approximately 345 million RMB in net annual interest expenses, equivalent to 8%-10% of earnings forecasts for the next two fiscal years. Citi noted this could lead to a positive profit alert in August, acting as a near-term catalyst.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)