According to our statistics on 27 listed companies in the paper industry in Shanghai and Shenzhen, the average main business income of the paper industry in the first half of this year was RMB 63,825,000, a sharp increase of 52.59% compared with the same period of last year. The average weighted earnings per share was RMB 0.1277. On the face of it, the growth of the paper industry has obviously increased and it is expected to usher in a new round of development cycles.
Paper industry development
Since 1998, the annual output of the domestic paper industry has grown at a rate of more than 20%. Good growth has laid a solid foundation for its subsequent development. At present, the capacity of China's paper industry has grown by more than 18%. The domestic paper industry output and consumption account for 10% and 14% of the world total respectively, second only to the United States, and the annual growth rate of production and consumption exceeds double digits.
Informatization brings new demands
From the perspective of scientific development, informationization has not reduced the consumption of paper products. On the contrary, the development of information science has brought about demand for new varieties of paper, and it is still expected that the future development prospects of the papermaking industry will be well expected. Therefore, the papermaking industry in Shanghai and Shenzhen will still have more room for development and more investment opportunities in the next 10 years.
Focus on the industrial chain extension stocks
Although the paper industry will cause serious pollution, it has limited the market's investment enthusiasm. However, we have noticed that some listed companies have adopted the method of extending the industrial chain and penetrated into the raw material industry, thereby gaining favor in the secondary market. Many companies infiltrated into fast-growing forests and other industries. Among them, Huatai shares took the lead in implementing the “Green Ecological Paper Industry Development Strategyâ€, thus ensuring the company’s advantages in competition with raw materials and other companies; the recently-launched construction of Yueyang Paper’s forestry-paper integration. The road to the fundamental solution to the company's development needs of the supply of raw materials. Under the background of extending the industrial chain, listed companies in the paper and the Shanghai Stock Exchange will also embrace the golden development cycle, and their main business income and net profit are expected to achieve positive growth. The changes in the position structure of the fund in the second quarter show that the proportion of funds invested by the fund in the paper-making printing industry increased by 39.44% in the second quarter, which indicates that the fund is very confident in the future development of the industry. Investors may wish to pay attention to such stocks.