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Daio Paper Restructures Chinese Operations with Asset Transfer

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Daio Paper Restructures Chinese Operations with Asset Transfer

The latest announcement is out from Daio Paper Corporation ( (JP:3880) ).

Daio Paper Corporation has decided to transfer the fixed assets of its subsidiary’s Nantong West factory, which produces baby diapers, to Hangzhou Haoyue Industrial Co., Ltd. This move is part of a strategic restructuring to focus on the growing sanitary products market and improve financial performance. The transfer aims to enhance cost competitiveness and maintain the well-known ‘GOO.N’ diaper brand in China by outsourcing production. The company expects an extraordinary loss of approximately 4 billion yen due to this transfer, but it is seen as a step towards strengthening its business model and responding to local consumer needs.

More about Daio Paper Corporation

Daio Paper Corporation operates in the paper industry, focusing on the production and sale of paper products and sanitary products. The company is listed on the Prime Market of the Tokyo Stock Exchange and has a significant presence in the Chinese market through its subsidiary, Elleair International China (Nantong) Co., Ltd.

YTD Price Performance: 5.37%

Technical Sentiment Consensus Rating: Buy

Current Market Cap: €853.1M

For a thorough assessment of 3880 stock, go to TipRanks’ Stock Analysis page.

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