Gelonghui, January 31 | CICC released a report saying that Jiuji expects net profit of 200 million to 400 million yuan for the first half of fiscal year 2024, and a loss of 1,389 billion yuan for the same period last year, which is lower than the bank's and market expectations, mainly due to weak domestic demand and the impact on imported paper supply exceeding expectations. The bank roughly estimated sales volume of 10 million tons. The company's net profit per ton for the first half of fiscal year 2024 was about 20 to 40 yuan. Of these, losses may still be in the third quarter of last year. Prices of white cards, gray, and cultural paper recovered significantly in the fourth quarter of last year, which may be an important reason why the company's single-quarter performance exceeded expectations. The bank indicates that the product structure of Jiuji continues to be optimized, and the energy cost advantage is gradually returning. Considering that demand recovery was weaker than expected, CICC lowered its profit for the 2024 and 2025 fiscal years by 60% and 25% to $1.002.6 billion to maintain the “outperforming industry” rating. Considering that the company's profit per ton has changed from loss to profit and the valuation department has repaired the channel, the target price was lowered by 22% to HK$4.9.