Bank of America issued a research report stating that ND PAPER (02689) delivered FY2025 results in line with expectations, with net profit reaching RMB 1.767 billion, meeting the previously announced profit guidance range of RMB 1.7-1.9 billion. FY2025 sales volume increased 9.7% year-over-year to 21.5 million tons, primarily benefiting from a strong customer base and enhanced new capacity, while second-half FY2025 sales volume grew moderately by 5.2% year-over-year to 10.1 million tons. The bank maintains its "Buy" rating with a target price of HK$6.5. Given its cost advantages, ND PAPER plans to expand its wood pulp capacity from the current 6 million tons to 8 million tons by Q1 2027, adding 700,000 tons, 500,000 tons, and 800,000 tons in Chongqing, Tianjin, and Guangxi Beihai respectively. The capital expenditure for pulp capacity currently stands at RMB 4,000-6,000 per ton.