On the evening of April 29, Shandong Chenming Paper Holdings Limited(000488) released the first quarter report of 2022. The report shows that Shandong Chenming Paper Holdings Limited(000488) achieved an operating revenue of 8.515 billion yuan and a net profit of 132 million yuan in the first quarter of this year. Although there was a certain decline compared with the first quarter of last year, the data shows an upward trend compared with the fourth quarter of last year.
cost and policy advantages superimposed
performance bottom climbing
Affected by the supply side stimulation (the main pulp producing areas such as Canada, Finland and Brazil are disturbed by the supply chain, and the short-term wood pulp supply shrinks) and the changes in the commodity macro environment caused by geopolitics, the pulp price has continued to rise since the fourth quarter of 2021, so the wood pulp paper products have reached the bottom of the historical cycle.
According to Shandong Chenming Paper Holdings Limited(000488) introduction, in the fourth quarter of 2021, Shandong Chenming Paper Holdings Limited(000488) mainstream wood pulp paper, white cardboard, cultural paper and coated paper were basically at the bottom of profit per ton. In the first quarter of 2022, affected by the superposition of cost and policy advantages, Shandong Chenming Paper Holdings Limited(000488) single quarter realized a net profit of 132 million yuan, and the performance began to bottom and climb.
In the context of the continuous rise of pulp prices, Shandong Chenming Paper Holdings Limited(000488) has a capacity of 4.3 million tons of self-made pulp, which has stabilized the cost fluctuation in a considerable proportion. The company is less affected by the rise of pulp prices than small and medium-sized paper enterprises.
In addition, in January this year, 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 introduced that the export volume of the company increased significantly in the first quarter due to the reduction of international paper supply and the entry into force of relevant policies of RCEP.
complete industrial chain layout and expected profitability
The continuous high fluctuation of pulp and energy prices has a great impact on papermaking enterprises from the cost side. In recent years, the leading enterprises are accelerating the layout of their respective industrial chains and promoting the integration of China’s papermaking industry into an accelerated period.
“Next, the paper industry will face the opportunity of increasing industry concentration and vertical integration of Forest Pulp and paper industry chain. For some small and medium-sized unitary paper enterprises, they will face greater market and cost pressure, and even the challenge of market clearing.” Bai Wenxi, chief economist of IPG China, said in an interview with reporters.
Shandong Chenming Paper Holdings Limited(000488) in recent years, it has been committed to the construction of pulp and paper integration in Shouguang, Zhanjiang and Huanggang, leading the industry to complete the layout of the industrial chain, providing a solid foundation for it to maintain strong profitability when its debt ratio is higher than that of the same industry.
Some analysts pointed out that in the first half of 2022, the overall supply of wood pulp is tight, and the pulp price is expected to be strong; With the release of new production capacity in the second half of 2022, the price of the whole end may drop gradually, but it will not fluctuate too much in 2022; In the second half of 2021, the coal price rose sharply and fluctuated abnormally. It is expected to gradually return to a reasonable price in the later stage. Shandong Chenming Paper Holdings Limited(000488) as the head enterprise of wood pulp papermaking, the profit elasticity is expected.
