Paper companies are under pressure

According to the annual reports of listed paper companies released by the China Securities Regulatory Commission’s designated information disclosure website for listed companies, the 27 listed paper companies had a total revenue of 106.6 billion yuan and a total profit of 5.056 billion yuan in the first half of this year. Among them, 19 paper companies achieved revenue growth, accounting for 70.37%; 22 paper companies achieved net profit decline, accounting for 81.48%. Listed paper companies generally have the situation of increasing revenue without increasing profits.

paper company

In the first half of the year, when major leading paper companies issued price increase letters, the net profit of listed paper companies has not been repaired. Judging from the semi-annual reports released by 27 listed paper companies, the revenue of listed paper companies in the first half of the year all exceeded 100 million yuan. 3 listed paper companies have revenue of over 10 billion yuan, the leading position in the industry was further consolidated. Among them, IP Sun Paper mill led the way with 19.855 billion yuan, surpassing Chenming Paper mill and Shanying International, and became the listed paper company with the most revenue.

In terms of net profit, 25 listed paper companies made profits, and only 1 listed paper company’s net profit exceeded 1 billion yuan, which was 1.659 billion yuan of IP Sun Paper mill. Bohui Paper mill ranked second with a net profit of 432 million yuan, and Xianhe shares ranked third with a net profit of 354 million yuan. Chenming Paper dropped out of the top 5 list with a net profit of 230 million yuan. The number of paper companies with a year-on-year decline in net profit was considerable in the first half of this year, reaching 22, accounting for 81.48% of the total.

 Looking at these paper companies with declining net profit, especially the representatives of leading paper companies, the increase in operating costs is the main factor. For example, Chenming Paper’s semi-annual report shows that in the first half of the year, affected by factors such as the fermentation of public health events, the turbulent international political situation, and high inflation, the prices of bulk commodities and international logistics rose sharply, resulting in a sharp rise in the operating costs of paper-making enterprises; domestic market demand is weak, the price transmission mechanism is difficult to play, and the price of machine-made paper is lower than the same period of the previous year. Shanying International’s semi-annual report shows that the second quarter should be the low point of the year, ushering in the “darkest moment”. Affected by factors such as repeated COVID-19 outbreaks, logistics controls, and rising costs of raw materials, energy and transportation for major products, operating results were under pressure.

international logistics

 


Post time: Oct-31-2022