Shares of Nine Dragons Paper (Holdings) Ltd, the company behind ND PAPER (02689), plummeted by 7.78% on Tuesday, September 25, 2024. The significant drop in stock price appears to be in reaction to the company's announcement that it does not recommend payment of a final dividend for the fiscal year 2024.

While the decision to withhold dividend payments could be seen as a negative signal by investors, the company did report a profit attributable of RMB750.7 million for the fiscal year. However, the lack of detailed financial information makes it difficult to fully assess the reasons behind the company's decision to forego dividend payments.

Analysts suggest that the absence of a final dividend could indicate potential financial constraints or a more conservative approach by the management, which may have contributed to the sharp sell-off in the stock. However, without further insights into the company's future plans and strategies, the market's reaction may be an overreaction to the dividend announcement alone.