HK-listed Nine Dragons Paper hits near 1-1/2-year high, Daiwa lifts target price

Nine Dragons Paper (Holdings)

26/02/2020 06:39

** Shares of Nine Dragons Paper (Holdings) Ltd  2689.HK 
rise as much as 5.3% to HK$9.40, highest since September 2018
    ** Chinese paper products maker's stock up for a second
straight session
    ** Brokerage Daiwa raises target price to HK$10 from
HK$8.70, maintains "outperform" rating
    ** Says positive on co after H1 results, with stock price
momentum to continue on industry-wide price hikes, policy relief
    ** Expects co's margins to expand with paper prices seen to
remain solid in next 4-6 weeks
    ** Says the coronavirus outbreak has prompted companies to
consider new capacity plans, which may improve industry's
supply-demand dynamics
    ** As of the previous close, Nine Dragons Paper stock had
surged 10.3% this year
    ** Stock has outperformed the Hang Seng Commerce & Industry
Index sector  .HSNC  by 10.8 percentage points in the past month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
falls 1.4%
    ** The Hang Seng China enterprises index  .HSCE  slides 0.8%
and the benchmark index  .HSI  down 0.9%

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)