ND Paper (02689) gained over 3% today, rising 3.42% to HK$6.05 with trading volume of HK$40.68 million as of press time.

On the news front, ND Paper's multiple production bases have issued latest price adjustment notices, with the highest increase reaching 50 yuan per ton. Additionally, ND Paper will hold a board meeting on September 24 (this Wednesday) to approve the company and its subsidiaries' final results for the year ended June 30, 2025, among other matters.

The company previously issued a profit alert, expecting to achieve annual profit (for the year ended June 30, 2025) of approximately RMB 2.1 billion to RMB 2.3 billion, representing a 165% to 190% increase compared to last year's RMB 794 million.

Shenwan Hongyuan Securities believes that Q3 gradually enters peak season for the industry, with corrugated cardboard and containerboard sectors beginning modest price increases. Furthermore, overseas pulp mills show strong production control intentions, with pulp prices also experiencing slight rebounds, providing support for paper prices.

The paper industry has previously been affected by weak demand and continuous new capacity additions, resulting in low industry utilization rates and losses in some segments. With potential supply improvements from anti-involution trends, industry supply and demand dynamics are expected to improve.