The hottest paper industry shows obvious signs in

Paper industry: signs of off-season are obvious, waiting for the profit inflection point

the trend of paper and printing sector this week lags behind the market. The sector fell by 3.00% this week, making a breakthrough behind Shanghai. The Shenzhen 300 index (up 1.95% this week) was 1.05 percentage points

at present, the overall valuation of the sector is somewhat defensive. In the short term, we need to pay attention to the trading opportunities expected to be brought by the continuous appreciation of the RMB against the US dollar. However, in the short term, the industry's profitability is facing downward pressure, so we still maintain the investment rating of the industry's increased holdings and the recommendation of standard configuration. In view of the good fundamentals of most companies in the light industry and their propensity to consume, we give investment suggestions for the light industry

maintain the judgment on the trend of the industry in the second half of the year. At present, the industry is the first 13. Stress control rate accuracy: the signs of decline when the rate is less than 0.05% fs/s have begun to show gradually. The profitability of the industry in the third quarter will show a downward trend month on month, but it is expected to rebound at the end of the third quarter. The traditional consumption peak season in the fourth quarter is expected to improve the profitability of the industry. At the same time, if the elimination of backward production capacity is indeed implemented, The industry is expected to usher in trend investment opportunities in the fourth quarter

the international pulp price remained stable this week, while the domestic pulp price continued to decline. The main reason for the decline of domestic pulp price is the arrival of the consumption off-season in the third quarter and the decline of domestic demand

international waste paper prices remained stable this week. We continue our previous view that the short-term waste paper price may not continue to rise significantly (if the sample is dark, the gauge is covered with white paint), but there is no reason to fall significantly. We maintain the previous view: the possibility of a sharp decline in the price of waste paper is small, and the price is expected to maintain a high oscillation or rise slightly

the decline rate of paper prices has slowed down, but it can not be said that there is nothing to talk about changing the decline. The reason lies in the decline of domestic pulp prices and the gradual entry into the off-season of paper consumption in the third quarter. The elimination of backward production capacity needs to be seen in the later stage

given that the overall valuation of the paper industry is still not high, the investment rating of the industry's increased holdings is given, and it is recommended to configure it as standard