Goldman Sachs has released a research report stating that ND Paper (HK: 02689) delivered fiscal 2026 results that beat the bank's expectations, mainly driven by better-than-expected unit profits on paper products. The target price has been raised from HK$4.30 to HK$4.90, while the Sell rating is maintained.
The bank has respectively lifted its earnings per share forecasts for the company for fiscal 2027 and fiscal 2028 to RMB 0.60 and RMB 0.67, in order to reflect the improved unit profits. Nevertheless, it still holds the view that ongoing pulp-and-paper integration across the industry will continue to bring supply pressure, weighing on the outlook for the company's wood pulp and paper product margins.