ND Paper (02689) surged nearly 5%, rising 4.89% to HK$5.58 with trading turnover of HK$36.301 million as of press time. On the news front, several major paper mills including ND Paper have recently issued price increase notices, announcing upward adjustments to certain product prices in early September. Notably, domestic paper mills have generally implemented multiple rounds of price increases since August.

Securities analysts indicate optimism for continued strengthening in domestic packaging paper prices in the short term, which should benefit packaging paper companies through improved profitability and valuation repair. Previous analysis suggests that since 2020, the paper manufacturing industry has experienced intensified oversupply conditions, leading paper companies to adopt competitive strategies of trading price for volume to capture market share, resulting in significant profit pressure in the manufacturing segment.

Under the national backdrop of "anti-involution" policies, similar to supply-side structural reforms, there is potential to drive the exit of backward capacity in the packaging paper industry, achieving better supply-demand balance, driving paper price increases, and enhancing paper company profitability.