Main points of investment

Events:

Hengfeng Paper reported that its operating income during the period was 630 million yuan, down 3.19% from the same period last year, and the net profit attributed to listed companies was 30 million yuan, an increase of 13.64% over the same period last year.

Comments: the traditional main business trend is declining, the layout of the information service industry, the vanguard of the mixed reform of state-owned enterprises. We believe that the scarcity of Hengfeng Paper Industry is reflected in two aspects. On the one hand, the company is the only listing platform of Mudanjiang SASAC, and its strategic position is the key. Under the background of using the capital market to invigorate state-owned enterprises and expand the strength of state-owned assets, it is expected that strategic investors will be introduced into this major asset restructuring. On the other hand, Hengfeng Paper's own main business capital expenditure has been completely completed, and the interest-bearing liabilities have been further reduced after the completion of the convertible debt-to-equity swap. the company's current market capitalization is only 2.6 billion yuan, with a total equity of 300 million shares, excellent backdoor resources.

The company is the only listing platform of Mudanjiang SASAC and is expected to become the vanguard of mixed reform in the future. Mudanjiang SASAC is the only listing platform, the future is expected to introduce strategic investors, a substantial breakthrough in mixed reform. The company announced the suspension of trading on July 4 to plan major events. At present, the company's 2012 convertible bond project with an annual output of 60,000 tons of special coated paper will no longer be carried out, and the remaining 75.4326 million yuan of the project will be converted into supplementary liquidity. The main reason is that the vacuum aluminized paper industry, the main product of the special coated paper project, has entered a saturation stage and it is difficult to achieve the expected income. We believe that the company's traditional main business capital expenditure has come to an end, and in the future, considering the industry layout and the growth of listed companies, the company is expected to fully distribute emerging industries in the field of information technology services. the specific way is to raise funds for the issue of shares to acquire assets. As Hengfeng Paper is the only listed company platform in Mudanjiang City, Mudanjiang State-owned assets have no other information technology industry assets. We expect that this major asset restructuring of Hengfeng Paper will mean substantial progress in the reform of mixed ownership. Hengfeng Paper is expected to introduce strategic investors and lay out emerging information services industries.