Shandong Chenming Paper Holdings Limited(000488) april 29 released the first quarter report of 2022. The main financial indicators in the first quarter achieved positive growth month on month, of which the operating revenue was about 8.514 billion yuan, up 17.32% month on month; The net profit attributable to shareholders of listed companies was about 114 million yuan, up 197.52% month on month.
From the middle and late fourth quarter of 2021, the prosperity of the paper market has gradually picked up. According to the public data, as of March 30, 2022, the market price of white cardboard was 6700 yuan / ton, the price of double offset paper was 6400 yuan / ton, and the price of coated paper also recovered to more than 6000 yuan / ton. The market recovery trend appeared.
Shandong Chenming Paper Holdings Limited(000488) as one of the leading enterprises in the paper industry, it has maintained a good momentum of development. In 2021, Shandong Chenming Paper Holdings Limited(000488) achieved double growth of revenue and net profit. The company achieved a revenue of about 33.02 billion yuan in 2021, a year-on-year increase of 7.43%; The net profit attributable to shareholders of listed companies was about 2.066 billion yuan, a year-on-year increase of 20.65%, better than the industry average.
In addition, the company’s debt reduction strategy has been gradually implemented. In 2021, the company’s financial expenses decreased by nearly 200 million yuan compared with the previous year, the total liabilities decreased by nearly 5.5 billion yuan compared with the previous year, and the capital structure was further optimized. The scale of the company’s financial leasing business has been reduced to less than 8 billion yuan, and the risk has been further effectively controlled.
Disturbed by global inflation, epidemic and other factors, the price of wood pulp has continued to rise since mid November 2021. The price of outer disk coniferous pulp increased from 710 US dollars / ton to about 900 US dollars / ton; The price of outer disk broad-leaved pulp gradually increased from about 560 US dollars / ton to 700 US dollars / ton. In addition, the shortage of transportation capacity has led to a sharp rise in shipping costs and an increase in the cost of raw materials for papermaking enterprises.
Shandong Chenming Paper Holdings Limited(000488) has a wood pulp production capacity of about 4.3 million tons, basically matching the pulp and paper production capacity. In the context of the rising market price of wood pulp, the cost advantage of self-made pulp can stabilize the production cost to a certain extent.
In addition, the gradual implementation of RCEP policy will play a positive role in promoting the trade reciprocity and facilitation of the paper industry.
In January 2022, the regional comprehensive economic partnership agreement (RCEP) officially entered into force. The first countries to enter into force include brunei, Cambodia, Laos, Singapore, Thailand, Vietnam and other six ASEAN countries and four non ASEAN countries such as China, Japan, New Zealand and Australia Shandong Chenming Paper Holdings Limited(000488) through the approval and recognition of the General Administration of Customs of the people’s Republic of China, it has obtained the certificate of recognition of the approved exporter under the RCEP of the customs of the people’s Republic of China.
For Shandong Chenming Paper Holdings Limited(000488) , on the one hand, the relevant policies of RCEP will be conducive to the preferential and convenient import of wood chips and other raw materials; On the other hand, as an approved exporter under RCEP approved by the General Administration of customs, the company will also benefit from the export facilitation of RCEP.
Shandong Chenming Paper Holdings Limited(000488) relevant person in charge said, “after the full implementation of RCEP, it is estimated that more than US $6 million of tariff reduction and exemption can be saved for customers every year, which will help deepen the internationalization process of enterprises.”
According to the analysis of some securities companies, although the rise of upstream raw materials and freight leads to the overall pressure of the industry, it will promote the survival of the fittest and the improvement of concentration. In the short term, the rise of pulp price supports the price of paper, and the performance flexibility of head enterprises can be expected; From a long-term point of view, the self-made enterprises have a good growth pattern and sustainable performance in the middle and lower reaches.
