Growth in consumption of printing paper
rise in paper prices embarrassed, late is not good. This round of hikes in the price of newsprint began in 2007 fourth quarter in terms of 4800~4900 Yuan per ton at the end of last year, as at the current market price of 6100~6300 per tonne, total price increases up to 27.84%. We believe that the driver is cost factor in other paper margins improve, spurred by major newsprint manufacturers to raise prices to improve the level of gross profit. After the price increase, it is assumed that cases of waste paper prices remained stable, newsprint average gross margin of around 22% in 2007, representing an average of 16% gross profit level has been greatly improved, but still not as good as in 2005.
2007 books newspapers and other publishing printing paper consumption growth rates remain low: statistics, in 2007 China's total printings to 234.52 billion copies of books, periodicals, newspapers, reduced paper consumption 5.427 million metric tons, an increase of 1.61%, continued low. We believe that the slowdown in newspaper printing and book publishing paper negative growth, domestic demand may lengthen time to digest excess capacity, which is mainly for newsprint, offset paper company's future growth is expected to slow, original newsprint production lines arising within the industry switched to paper the kinetic energy or attenuation. Due to the fast growth of China's periodical Publishing, coated paper and high-grade offset paper in the future is expected to balance supply and demand, and good.
papermaking enterprises achieve higher growth this year confirmed, profit growth rate conservatively estimated at more than 50%. Major listed companies that reported earnings or forecasts, chenming paper 08 first-half net profit rose 100%~150%, Murray paper 94% and is expected to report growth in the first three quarters grew by 50%~100%, Sun paper industry growth 30%~50% growth 164.38%, Yueyang paper and expected growth in the first three quarters of 100% above bohui 150% above, Fujian Nan ping paper increases more than in 700%.