Reported about 1 year ago
In Taipei on June 10, 2024, market optimism prevails for the recovery of the paper industry in the second half of the year. Rong Cheng (1909) and Zheng Long (1904) both saw revenue growth in May, attributing this positive trend to anticipated demand during the 5-6 month e-commerce festival and as a prelude to the second half of the year. Rong Cheng reported a May revenue of 4.347 billion NT dollars, a 7.22% year-on-year increase, with operating profit of 106 million NT dollars and consecutive profits for four months. Zheng Long's May revenue reached 3.838 billion NT dollars, a 6.29% year-on-year increase, the highest single-month performance since May 2022. Analysts note that the upcoming 618 e-commerce festival and inventory replenishment demand from downstream customers have driven deliveries from paper mills, boosting performance. Additionally, the paper industry is transitioning towards inventory equilibrium, with prices poised to increase in June due to major factories raising prices, signaling positive growth prospects for the second half of the year.
Source: YAHOO