Paper printing and packaging: looking for the quality of growth and uncertainty

Paper prices have bottomed out, but the room for improvement in 2013 may be limited: Because of the massive release of new capacity and the weak economy, the paper prices continued to drop. Compared with the start of this year, paper price generally drops 3%-7%, compared to the same period of last year, it were down 8%-15%. At the current price level, paper prices are basically at the break-even line. At the view of supply and demand relations of papermaking industry, although 2012 will be the last year of a massive release of paper production capacity, the new capacity is substantially reduced; but the stock excess capacity still bigger and it is also difficult to see the degree recovery of market demand, we think profit margin improvement in large paper enterprises may be limited in 2013, the whole plate chance is less, but there may be some opportunity to stage, the time may be at the beginning of next year. In addition, for the next three years, new capacity is substantially reduced, with the stock capacity of digestive and integration, we think the paper plate may be usher in a wave of intermediate industry, we suggested that the investor to improve paper stock value in the second half of next year.

Living paper: The weak cyclical industry, the good growth: Paper industry is a typical weak cyclical industry, one of the industries which benefit from the global economic downturn, in the current context of uncertainty global economic, we think that paper industry has strong investment value. At present the industry demand in consumption to upgrade drive below is in fast growing period, wood pulp paper market capacity is around 20% annual growth.
At the same time, the industry began develop from decentralization to centralization, enterprises carry with funds, scale, brand and channel advantages to play the role of integration, market share increased acceleration, what’s more, we expect the raw materials will be at a relatively low cost in next two years, so the life of paper enterprises will be in a long-term " money" scene value.

The cigarette packaging printing: The margin of safety is high and the expansion space is large. Tobacco packaging industry demand is stably, its impact of economic fluctuations is small, in addition, it has a strong anti-cyclical, the profitability of the business is generally good and stable. Currently, the printing enterprises PE only 11-13 times (2012 performance meter), has a high margin of safety. In the background of tobacco restructuring, tobacco packaging enterprises is expected to achieve rapid development of epitaxial through mergers and acquisitions, and the raw material cost down, will also provide certain profit elasticity, so, these enterprises also have offensive.

Foshan JingXin Printing Co., Ltd. is devoted to packaging printing, album printing, commercial printing, hardcover book, carton boxes, calendar printing, card printing, paper notebook, posters printing, catalog printing, paper bag printing, and the post-press process. Our company is subordinate to JingXin International (Hong Kong) Investment Trading Company; with a high starting point, high requirements and high efficient innovative thought, we invested the most advanced brand new Heidelberg folio four colors machine, Heidelberg Speed Master CTP.