China Company Research ---- Shandong Bohui Paper Co., Ltd

China Company Research ---- Shandong Bohui Paper Co., Ltd

Shandong Bohui Paper Co., Ltd, founded in 1994, is a large-scale joint-stock nterprise integrating research & development, production and sales.

In 2007, Bohui made 723,000 tons of paper products (2006 was about 620,000 tons), which included, 230,000 tons of white cardboard , 230,000 tons of culture paper, 175,000 tons of Liner Board. The total sales was 72 10,000 tons in 2007 (2006 was about 610,000 tons, an increase of 18.0%), which included, 229,000 tones of white cardboard , 239,000 tons of paper culture, and 179,000 tons of Liner Board.

In 2007, Bohui made 3.17 billion yuan of sales incomes, an increase of 19.6 per cent year-on-year, 197.85 million yuan of net profits, and an increase of 34.7 per cent.

In terms of the paper industry’ booming, the profitability had a significantly enhancement in the second half of 2008; the monthly average net profits was 10.26 million yuan in the first half of 2008; the monthly average net profits was 19.66million yuan in the third quarter; the monthly average net profits was 25.77 million yuan in the fourth-quarter. The mid-term consolidated gross profit level was 16.54 per cent and 18.49 per cent of the whole year, simply calculating that the gross profit level reached 20.44 per cent in the second half of 2008.

2008, a new project of 150,000 tons of gypsum surface covering will complete and the project of 95,000 tons of chemical pulp will be completed in April. These two projects will contribute a positive result for company’s profitability, meanwhile, income tax is another positive point, the previous year income tax was 33 per cent and in terms of the new tax policy, the single tax ratio is 25 per cent, which is benefited apparently to company’s profitability.

1. Brief of Bohui

2. Performance in 2007
2.1. The data of performance
2.2. Figure of products and sales
2.3. Performance of sales and marketing share
2.4. The gradual decline of profitability
2.5. The data of financial report

3. Overview of paper industry
3.1.The main data of paper industry in 2007
3.2. Outlook of paper industry of 2008
3.2.1.The slow down investment of fixed assets and the policy of energy-saving will promote paper industry booming
3.2.2. The rising price of global raw materials
3.2.3. The appreciation of RMB will benefit some paper manufactories who depend on imported raw materials
3.2.4. The non-wooden pulp of cultural products’ prices and profitability continue to rise.
3.2.5. The consumption of coated white cardboard and Paperboard growth strongly
3.2.6. The improvement of paper manufactories’ operating efficiency

4. The advantage of competition of Bohui
4.1. The leading player of main products in paper market
4.2. The capacity of implementation
4.3. The great ability of cost control and high operating efficiency
4.4. The mature manufacturing technique of coated white cardboard

5. Prediction of performance in next few year
5.1. The capacity of profitability of cultural paper
5.1.1. Analysis of costs
5.1.2. Analysis of paper prices
5.1.3.Analysis of gross profit ratio
5.2. The potential achievement of white Cardpaper
5.2.1. Analysis of cost
5.2.2. Analysis of paper price
5.2.3. Analysis of gross profit ratio
5.3. The impact of the growth of performance in future

Charts
Figure: The amount of sales of Bohui main products
Figure: The sales figure of main products in the first quarter between 2005 and 2008
Figure: The sales marketing regions
Figure: Average monthly net profit between 2007 and 2008
Figure: The gross profit level of main products
Table: The financial statement between 2005 and 2007
Table: Comparison of main paper manufactories’ financial statement in 2006
Table: The investment of fixed assets of paper products between 2003 and 2007
Figure: The price of international pulp (NBSK U.S. dollars)
Figure: The price of international pulp (NBSK Euro)
Figure: The price of international pulp (BHKP Euro)
Figure: The Graph of price in the United States waste futures (1/1-1/31) (08)
Figure: The graph of price in the United States waste futures (2/1-2/29) (08)
Figure: The graph of price in the United States waste futures (3/1-3/31) (08)
Figure: The consumption and output of coated white cardboard between 2001 and 2006
Figure: Comparison of the consumption growth between coated white cardboard and paper and cardboard
Figure: The gross profit ratio of cultural paper and cardboard
Table: The cost and price / per ton of book paper in the same period
Figure: The price of wood free paper(55g)
Figure: The gross profit ratio of cultural paper in recent years and forecast
Figure: The price of imported coniferous pulp in China market
Figure: The price of imports of hardwood pulp in China market
Figure: The price of domestic cardboard paper
Figure: The gross profit ratio of white Cardboard paper and forecast