- May 17, 2018 -
The price of paper is raging. Has it been a good thing for listed paper companies in the past year? Really good!
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Recently, the issue of paper prices once again boarded CCTV Finance. Xiao Bian had forgotten that it was several times. Not only that, but the news that paper prices have risen also appeared on the top page of Sina News, according to reports, from May 1 to May 5. On the 4th of the month, on the 4th of the month, 32 paper mills across the country have announced price increases. The price increases for various types of paper ranged from 100 yuan to 300 yuan per ton. Presumably, this news was also caused in the circle of friends of the printing company. There was a panic.
Looking back at the past 2017, the price of paper is raging, and the momentum in 2018 has not diminished. The price increase has spread so far. As a member of the printing industry, Xiao Bian knows that printing companies feel: Pain! Sadly! bitter! Miserable!
However, for papermaking companies, Xiao Bian does not know much about it, but the price of paper soars and rises. Paper makers must be quite profitable!
Just as many listed paper companies released the 2017 annual earnings report, then the paper price is raging. Have you ever had a good paper listed company in the past year? Answer: Really good!
Although I was psychologically prepared for some time, I can't help but sigh when I saw the major paper companies' 2017 performance.
Unlike the manufacturing industry
How good is it? Following are the performance reports of several typical paper companies in 2017. They are Chenming Paper, Sun Paper, Shanying Paper, Bohui Paper and Jingxing Paper. The five companies achieved a total revenue of 80.541 billion yuan. The total net profit was 9.302 billion yuan and the net interest rate was 11.55%.
What is the concept of a 11.55% net margin? Zhao Ming, President of Glory, once made a microblog comment: In China, hardware companies that can achieve a net profit margin of 5% on integrated hardware are rare. If Glory's comprehensive hardware net profit rate reaches 5%, it is already very happy.
As the mobile phone industry in emerging industries and technology manufacturing industries is still the case, what will the entire manufacturing environment look like?
We can look at the automotive industry again. In 2017, the profit rate of China's auto manufacturing industry was 8.0%—this is not a net profit rate, and it has not yet deducted the income tax portion.
According to the 2017 World Top 500 rankings and other public data, in 2016, SAIC, Dongfeng, FAW, BAIC, GAC, Changan six major automobile groups, the total profit lost to a Toyota, the net profit margin is even more apart from Toyota (6.6%) Far away.
The three major brands of Geely, Great Wall, and BYD, the sum of profits in 2017 (19.7 billion) is only 54% of the public's profit in China (36.6 billion). "7% is almost the ceiling of profits for the automotive industry." One commentator commented.
In addition, Xiao Bian found a well-known financial person Wu Xiaobo's data compiled by the media, which involved the recent changes in manufacturing profit margins, may be able to further explain the problem.
It can be said that papermaking companies with a net interest rate as high as 11.55% have crushed a series of first-tier manufacturing companies in China. Not only that, BMW, the world-renowned luxury car brand, is afraid that they can only sigh.
How does it compare to the printing industry? Here is no need to enumerate the data to explain it, one sentence: "Everyone is making big paper, I'm sorry, we are dragging is not hind legs, all dragged to the neck."