[ET Net News Agency, 10 December 2020] Goldman Sachs raised its target price for
Shandong Chenming Paper Holdings (01812) to HK$4.3 from HK$2.4 and upgraded its rating to
"neutral" from "sell".
The research house expects the whiteboard paper market to remain tight in 2021, after
supply consolidation in 2020, and demand boost from substitution after coated paper
capacity shutdown.
With whiteboard paper contributing 30% of 2020 total sales, Goldman expects higher
whiteboard paper spread to drive Chenming's net profit to improve to Rmb2.2bn in both 2021
and 2022 from Rmb1.8bn in 2020. It revised up its recurring earnings estimates for
Chenming by 18% for 2020, 178% for 2021, and 210% for 2022, to reflect higher whiteboard
and graphic paper spread assumptions. (KL)