The Zhitong Finance app learned that J.P. Morgan Chase released a research report saying that the target price of paper (02314) was lowered by 14% from HK$2.9 to HK$2.5, and the rating was “in sync with the market”. The reason is that the overall paper market is still under pressure due to weak demand and increased supply.

The bank expects that paper prices will still be under pressure in 2024 because there are still about 4.1 million tons of additional production capacity waiting to be increased in the market, and demand is slowly recovering. As a result, the company's profit margin may continue to face resistance brought about by weak industrial fundamentals.