Incha Paper Group





Light industry and paper industry: paper prices fell slightly, raw material imports fell

The papermaking sector outperformed the broader market: The papermaking sector rose 1.8% this week, while the CSI 300 Index rose 0.85% over the same period, and the sector outperformed the broader market by 0.95 percentage points. Among them, the 8 key papermaking companies that fit rose 2.63%, leading the market by 1.78 percentage points.Key company news:1), Donggang shares: The People's Bank of China issued an announcement: commercial bank financial IC card electronic cash cross-bank transfer pilot work was launched, and it is planned to start nationwide promotion in September 2013. The increase in the convenience of electronic cash promotes the growth of IC card issuance: (1) Banks are more active in issuing cards, and the improvement in the convenience of electronic cash will expand the use of electronic cash. At the same time, the micro-payment function of electronic cash adds expanded services and customer added value on the basis of ordinary bank cards. For banks, it increases customer stickiness, and users belong to the bank. will be higher. (2) Contribute to the popularization of financial IC cards. The convenient use of electronic cash functions will enhance the attractiveness of financial IC cards to users and contribute to the promotion of financial IC cards on a large scale. To sum up, the pilot project of cross-bank deposit of electronic cash has improved the initiative of banks and users from the two dimensions of supply and demand, and will have a positive effect on the growth of IC card issuance.2), Xinghui Car Model: Semi-annual performance report: operating income of 1.039 billion yuan, a year-on-year increase of 330.8%; net profit attributable to owners of the parent company of 51.65 million, a year-on-year increase of 32.1%; EPS 0.22 yuan. In the first half of the year, the company's dealer channel grew slowly, while the expansion of commercial and supermarket channels accelerated, contributing more performance growth; the brand car model project has completed 80% of the expected income in 2012: the brand car model additional project has a production capacity of 2.5 million car models after it was put into production in March It will contribute to the main income and profit growth of the car model business in 2013. We estimate that the company's car model production capacity has reached more than 17 million units. Based on 70% capacity utilization, the sales volume of car models can reach about 13 million units, an increase of about 10% to 15% year-on-year .Paper prices dropped slightly: Coated paper dropped slightly by 0.23% this week, and the domestic prices of other paper types were all flat. From the monthly data, the prices of coated paper and containerboard paper fell month-on-month in July, and the monthly paper prices of other paper types were all flat. Among them, coated paper fell slightly by 0.05% month-on-month, and containerboard paper fell by 1.51% month-on-month. In July, the international coated paper rose by 1.96% month-on-month, and the international newsprint fell by 4.79% month-on-month.Recommend Donggang, Xinghui Car Model, Rebecca, Sophia, and Yihua Wood: Recently, Donggang, which is gradually advancing the smart card business and has a margin of valuation safety, and Rebecca, who is expected to improve its export performance in the second half of the year. Focusing on the main investment line of growth and brand throughout the year, recommend Xinghui car models with excellent growth in sub-sectors and companies; Sophia, which develops both brand building and channel expansion; Yihua Wood, which benefits to a large extent from the recovery of overseas real estate boom .Risk warning: 1. Macroeconomic recovery is lower than expected;

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