Stock market: Paper-making rebound potential

Weijun Hong Kong stocks in the July week performance is still weak, the Hang Seng index of the bill fell 494 points, back to 17,708. As the market has been down for two consecutive weeks, there are signs of a further weakening in the technology trend and a lack of direction in the peripheral stock market, and it is expected that Hong Kong stocks will continue to have a high chance of repeatedly firing up and down. 　　However, based on the stock market capital outflow is not serious, it is estimated that the FRY market will still become a short-term feature. In Hong Kong stock market in Friday, Riven paper (2314) but there is a decent trend, has robbed 8.19 yuan, close to 8.1 yuan, 0.5 yuan or 6.58%, is the daily transaction increased to 67.97 million yuan, but more than Thursday has been increased by more than. As at the end of last September, the net profit of the group decreased by 6.9% to $668 million, and the new paper machine began to be put into production, which led to an increase in the total output of the original paper to 3.76 million tonnes, which caused the overall gross profit margin to be reduced from 23.9% to 18.5% due to the increase in average 　　Riven paper in May, it is expected that the net profit for the year ended March will have a significant decline, and that no dividend will be issued in the financial year of 2010. Positive debt relief to boost market confidence although the group's short-term performance is difficult to look forward to, but the company has said that the worst time has passed, the current business has been restored to stability, and in fact, accounting for about 90% of the operating costs of waste paper prices have been greatly reduced, has helped to enhance the group's gross Facing the external economic environment is still not clear, Riven paper in the next 1-2 years the main task is to reduce debt, the 2011 net debt ratio is expected to be reduced to 55%, in addition to the planned 09 capital expenditure significantly reduced to $1.2 billion, will also slow down the development programme, including the Vietnamese Paper Factory Project for 2 years. 　　Riven paper's positive debt reduction will not only improve the financial situation, but also help to regain the confidence of market investors. It is worth mentioning that Riven paper recently indicated that it would repay two bills of $50 million (HK $390 million) in advance. The sub-group pays the bonds on the basis of 100% of the principal amount plus the interest due, and will pay for its own operating cash flow and bank lending. 　　The two priority bills were originally due on August 16, 2012 at a rate of 8. Speaking and speaking, the mainland to stimulate the economy, China's banks have a large number of boiling water, so that new loans continue to increase, but it is advantageous to enterprises can borrow "flat money." Riven paper This redemption of two long debts will pay a higher interest rate at the lower interest rate of the mainland bank, so the group should be regarded as a beneficiary of the bank's "flooding". In the market for the recovery concept stocks still have a vision, the expected rebound potential is still to be played, in the short term Bo rebound target still look in recent months to resistance level of 10 yuan.