[ET Net News Agency, 2 October 2018] Morgan Stanley lowered its target price for Nine
Dragons Paper (Holdings)(02689) to HK$10.4 from HK$13.9, and downgraded its rating to
"equal-weight" from "overweight".
The research house said, similar to Lee & Man (02314), Nine Dragons' profit will be
impacted by weak consumption in China, rising materials cost and environment control.
Morgan revised its EPS forecasts by 1%/2%/1% in 2018-20, respectively.
It said that the recent capacity cut in Guangdong has led to a better supply-side
outlook. But the strict import ban on waste paper has raised raw material costs
significantly. (KL)