CICC: Cuts Nine Dragons Paper (02689.HK) target price by 17% to HK$10; lowers FY27 net profit forecast by 5%

Zhitong Finance APP has learned that CICC issued a research report stating that Nine Dragons Paper (02689.HK)'s FY26 results are in line with its earlier guidance and the bank's expectations. Considering that the company's redemption of perpetual bonds has led to high debt and financial expenses, the bank lowered its FY27 net profit forecast by 5% to RMB 4.26 billion and introduced an FY28 net profit forecast of RMB 4.455 billion; taking into account the earnings forecast adjustment and the rise in debt levels, it lowered the target price by 17% to HKD 10, corresponding to FY27-28 P/B of 0.7x, implying 65% upside.