Goldman Sachs downgraded ND PAPER (02689.HK) and LEE & MAN PAPER (02314.HK) from Buy to Neutral, indicating fading cost advantage under decarbonization.
Paper firms replying on coal-fired power with higher coastal exposure (e.g. ND PAPER and LEE & MAN PAPER) will see more adverse impact in the coming years, given energy cost surge and difficult cost pass-through under uneven coal cut efforts across provinces.
The broker trimmed targets of ND PAPER and LEE & MAN PAPER to $11.2 and $6.8, down from $16.5 and $9.
Paper firms replying on coal-fired power with higher coastal exposure (e.g. ND PAPER and LEE & MAN PAPER) will see more adverse impact in the coming years, given energy cost surge and difficult cost pass-through under uneven coal cut efforts across provinces.
The broker trimmed targets of ND PAPER and LEE & MAN PAPER to $11.2 and $6.8, down from $16.5 and $9.