Nine Dragons Paper sees profit growth of up to 153 percent for the first half

Nine Dragons Paper (2689) expects its first-half profit to jump up to 153 percent to 1.9 billion yuan (HK$2.06 billion), as gross profit rose on higher sales volume and lower costs.

The papermaker is estimated to record a profit of between 1.7 billion yuan and 1.9 billion yuan for the six months ended June, representing a rise ranging from 126 percent to 153 percent. 

The increase was mainly contributed by the increase in sales volume, the decrease in the cost of raw materials being more significantly faster than the decrease in the selling prices of the products, which led to the increase in gross profit.