Guoyuan Hong Kong has a buy rating on 02002-HK, with a target price of HK $6.25, equivalent to 15 times PE in 2010 and 8.7 times PE in 2011, with 25.8 per cent room to rise from the current price.

Guoyuan said that the main purpose of the company's development of preprinting business is to promote paper sales, hoping to gradually infiltrate products to end customers, and eventually provide packaging solutions for customers. The company's pre-printing equipment is imported from Germany, the first production base is located in Kunshan, the equipment investment of about 60 million yuan, plans to put into production in the middle of next year. The planned production capacity of the first phase is 8-100000 tons, with an investment of less than 100 million yuan, and is expected to contribute profits in 2012. The company plans to invest in five preprinting machines in the next two years.

Sunshine Paper closed up 1.81% to HK $5.06.