The decline in gross profit margin and rising financial expense ratio are the main reasons for the decline in performance. The primary reason for the sharp decline in the performance of listed companies is the decline in gross profit margin. The fundamental reason for the decline in gross profit margin is that raw material prices are firmer than paper prices. In the first half of the year, the price of finished paper was passivated during the period when raw materials remained at a high level or even slowly. Even in the traditional peak season, paper mills had a strong impulse to raise prices, but the actual situation was not satisfactory. In the second half of the year, raw material prices went down, and paper prices also fell.
The second reason is that interest expenses have led to a sharp rise in financial costs. The papermaking industry is a capital-intensive enterprise. Domestic paper-making enterprises generally pursue large-scale and large-scale investment. While increasing production capacity, the hunger and thirst of funds is accompanying. Therefore, the debt level of listed companies has remained high. The 2011 annual report shows that the average debt ratio of A-share listed paper companies is 64.04%, of which interest-bearing liabilities accounted for 45.21% of total assets, both of which have reached historical high levels. Under the background of the continued tightening of monetary policy in 11 years, interest rates have continued to rise, and paper companies' interest expenses have become a huge burden, making the financial expense ratio climb from a peak of 2.88% in 10 years to a historical high of 4.17%.
The first quarter results fell sharply year-on-year, but rebounded from the previous month. Due to the high degree of prosperity in the same period last year, the performance in the first quarter of this year fell sharply by 96.03%. However, driven by the inventory factor after the year, the chain has rebounded and the performance has improved marginally, but the turning point has not yet arrived.
The turning point has not yet arrived, maintaining a “neutral†rating. China's paper industry is taking a road of scale, with rapid expansion of production capacity and low concentration. Therefore, product prices are always in a weak position relative to raw material prices under sales pressure. In addition, the interest expense caused by the high debt ratio has eroded a large part of the profits. On the whole, we believe that the prosperity of the entire industry is difficult to improve before the factors such as overcapacity and low concentration have plagued the industry for many years. Taking into account valuation and industry outlook, we maintain a “neutral†investment rating.
Our factory bags are BRC food certified,We can produce animal food bags
Can be used for rice, flour, corn, and cereals.
Our company has been operating for 20 years and has rich export experience.
Pp Woven Bags can be made of coated, uncoated, or BOPP, which can help customers customize the size and printing
Whether it is a Offset Printed Bag, a film bag or Bopp Plastic Bags, we can customize the size
and Customized according to customer's printing design
Bopp Laminated Bagis our advantage product, we can print up to 7 colors, can be made into with a square bottom,
Generally our woven bag specifications are as follows:
width
30-75cm
length
As customer demand
fabric thickness
55g/m2-130g/m2
pe film
coated or no coated
BOPP laminated
20g/m2
Below are photos of our products
Food Bag, FDA approved bag, PP food sack, Sugar bag, Rice Bag
Shijiazhuang Boda Plastic Chemical Co., Ltd. , https://www.ppwovenbag-factory.com