--- title: "Weekly Recap | ND PAPER -14.7%, profit alert triggers sell-off" type: "News" locale: "en" url: "https://longbridge.com/en/news/296665835.md" description: "Nine Dragons Paper (2689.HK) had a turbulent week, closing at HK$6.875, down 14.7%. It significantly underperformed the Hang Seng Index, which gained 2.19%, trailing the benchmark by roughly 16.89 percentage points. The stock held steady near HK$8.00 on Monday (17 Aug) and Tuesday (18 Aug) before a sharp intraday sell-off on Wednesday (19 Aug). Prices swung widely, touching a low of HK$6.505 before settling at HK$6.585. Thursday (20 Aug) saw a partial bounce back to HK$6." datetime: "2026-08-22T04:11:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296665835.md) - [en](https://longbridge.com/en/news/296665835.md) - [zh-HK](https://longbridge.com/zh-HK/news/296665835.md) generator: "portal-rs" --- # Weekly Recap | ND PAPER -14.7%, profit alert triggers sell-off ## The Week Nine Dragons Paper (2689.HK) had a turbulent week, closing at HK$6.875, down 14.7%. It significantly underperformed the Hang Seng Index, which gained 2.19%, trailing the benchmark by roughly 16.89 percentage points. The stock held steady near HK$8.00 on Monday (17 Aug) and Tuesday (18 Aug) before a sharp intraday sell-off on Wednesday (19 Aug). Prices swung widely, touching a low of HK$6.505 before settling at HK$6.585. Thursday (20 Aug) saw a partial bounce back to HK$6.875, but the week’s losses were not recovered. Daily average volume more than doubled versus the recent median, signalling heightened market disagreement. ## Key Events A positive profit alert was the week’s centrepiece. On Thursday midday, the company guided that full-year attributable profit for the year ended 30 June 2026 would rise 92.4% to 103.7% year-on-year. Instead of rallying, the stock tumbled over 11% intraday as investors sold into the news. After the close, Nine Dragons announced it would convene a board meeting next week to approve the annual results and consider a dividend. Friday brought a technical rebound of nearly 7% during the session, though gains later narrowed. Meanwhile, a macro note early in the week highlighted how AI infrastructure and energy transition themes are reconfiguring Hong Kong equity flows, with traditional sectors like paper facing rotation pressure. ## Analyst Ratings Eleven analysts cover the stock: seven rate it buy, three rate it hold and one rates it sell. The consensus recommendation is buy, with a consensus target price of HK$9.367, implying roughly 36.25% upside from the latest close of HK$6.875. Individual target prices range from HK$4.338 to HK$12.090, a wide spread that reflects divergent views on the industry cycle. Within the paper-products sector, Nine Dragons ranks first in composite analyst rating. ## The Week Ahead The upcoming board meeting will be the main event. Investors will scrutinise the full-year earnings breakdown, management’s forward guidance, and the proposed final dividend to gauge whether the strong profit alert translates into sustained shareholder returns. After the volatile sell-off on the profit alert, the focus will be on whether fund flows pivot from short-term profit-taking back to fundamental re-rating. On the macro side, the ongoing sector rotation in Hong Kong equities will continue to influence the pace of valuation recovery for paper makers. ## In Short Nine Dragons delivered a near-doubling of full-year profit guidance but suffered a sharp sell-off, a classic ‘buy the rumour, sell the fact’ move. The 20% intraweek swing and spike in volume highlight intense two-way trading. Fundamentals appear supportive: a buy consensus with a target price over 36% above spot, and a P/B ratio of 0.59. Yet large-lot flows on the latest trading day were active on both sides, and sector rotation away from traditional manufacturing remains a headwind. Whether the stock can stabilise now hinges on the upcoming results details and the dividend proposal, which will either rebuild consensus or deepen the current stalemate. *This article is generated by LongbridgeAI from market data, for information only and not investment advice.* ### Related Stocks - [02689.HK](https://longbridge.com/en/quote/02689.HK.md) ## Related News & Research - [Nine Dragons Paper relocates Bermuda registered office to Richmond House, Hamilton](https://longbridge.com/en/news/294035053.md) - [Citic Securities Remains a Buy on Nine Dragons Paper Holdings (NDGPF)](https://longbridge.com/en/news/278633933.md) - [Kingfish Company publishes minutes of Aug. 26 annual shareholder meeting](https://longbridge.com/en/news/297059624.md) - [14:45 ETNew FreeFab Pallet Brings Together Two Longstanding Middle Tennessee Companies](https://longbridge.com/en/news/297078710.md) - [BaTeLab Shareholders Approve Amendments to Articles at 2026 EGM](https://longbridge.com/en/news/296789818.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**