Gelonghui, January 8 | Guosen's Research Reports indicate that Shandong Sun Paper (002078.SZ) is a leading large-scale integrated papermaking company that has adhered to its main business for forty years. It has extended and expanded its Business in the wood-pulp-paper Industry Chain, achieving horizontal scaling and vertical integration. The revenue proportions of its main products: cultural paper, kraft linerboard, and dissolving pulp are 42.5%, 24.8%, and 9.3% respectively, demonstrating both scale and brand advantages. Since 2022, the papermaking Industry has been at the bottom of a cycle characterized by demand contraction, supply shocks, and soaring prices for bulk commodities, leading to substantial fluctuations in profitability for paper companies, which generally face pressure. Standing out in profitability is Shandong Sun Paper: the company's profit margin has maintained between 7-9% over the past three years, backed by the management's foresight and the comprehensive strength of the company. First, internal detailed management improves efficiency and controls costs; second, diversified product configurations adjust the structure to enhance gross profit; third, the layout of three major bases, improved self-sufficiency in raw materials, and optimized production enhance cost efficiency. Looking ahead, the layout of timber resources in Laos is expected to further internalize external costs and establish long-term profit advantages. Maintaining 'Outperform' rating.