[ET Net News Agency, 4 July 2018] Morgan Stanley trimmed its target price for Nine
Dragons Paper Holdings (02689) to HK$13.9 from HK$15.7, and retained its "overweight"
rating.
The research house recalibrated its model following the company's upbeat 1H FY2018
results, and it made mark-to-market changes to ASP and raw material price assumptions,
resulting in a respective 4%/13%/22% reduction in its NP/t estimates for FY2018-20, given
higher cost stemming from the new import quota system and higher quality requirement for
wastepaper.
Morgan raised its capex and FY2019-20 volume assumptions according to company guidance
and announced pipelines. Overall, as a result, Morgan cut its FY2018/19/20 EPS estimates
by 4%/13%/22%. (KL)