[Liwen Paper] Liwen Paper earned 47.9% more last year; final dividend increased to 9.3 cents

Livent Paper Manufacturing (02314)
Announcement: Last year’s revenue was HKD 26.642 billion, up 2.5% year-on-year; net profit was HKD 1.941 billion, up 47.9% year-on-year; earnings per share were HKD 0.452, with a final dividend of HKD 0.093 per share, an increase of 106.7% year-on-year; total dividends for the year were HKD 0.159, up 48.6% year-on-year.

The same group’s Livent Cultural and Creative Industry earned 15.8% more last year, with a final dividend of 1.4 HKD. See 【Next Page】.

Pulp prices show a pattern of falling first and then rising

Livent Paper states that last year, pulp prices experienced fluctuations, falling initially and then rising. In the first half of the year, global economic growth expectations weakened, and new capacity was released, putting downward pressure on pulp prices. From mid-year to the second half, domestic policies against “internal competition,” along with news of reduced or shifted production from some overseas pulp mills, tightened supply. Paper companies eased cost pressures through price increases. Meanwhile, policies promoting consumption, such as “trade-in for new” programs, effectively boosted demand for packaging and consumer paper, supporting overall paper prices.

Balancing internal pulp capacity with external procurement

Livent Paper highlights that the company benefits from integrated vertical operations in pulp and paper production. By adjusting internal pulp capacity and external procurement, it effectively mitigates the impact of significant raw material price fluctuations. The group continues to optimize the layout of domestic production bases and energy structure, further reducing overall production costs. During the year, the group actively advanced multiple production line upgrades and efficiency improvement projects, enhancing overall productivity.

Livent Paper mentions that, amid geopolitical and trade policy uncertainties, overseas production bases in Vietnam and Malaysia play a vital role. Expanding export markets will be a key strategic focus moving forward.

“Stimulating Consumption” Expected to Benefit Packaging Business

Livent Paper anticipates that government efforts to combat plastic pollution will only intensify, increasing demand for green packaging solutions. The continued growth of e-commerce logistics and policies encouraging “trade-in for new” consumer goods will directly drive demand for high-quality packaging paper. By 2026, China aims to “boost consumption” as a top economic priority, which is expected to benefit the packaging paper industry. In terms of tissue paper, China still has significant growth potential in per capita paper usage compared to developed markets.

Source: Announcement