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Shandong Chenming Paper Warns of Deeper 2025 Losses Amid Mill Shutdowns and Business Restructuring

Story Highlights
  • Shandong Chenming Paper expects a larger 2025 net loss as plant shutdowns depress production, sales and earnings per share.
  • Exiting finance leasing and impairments weigh on results, while cost controls and better financing terms aim to stabilize operations.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Shandong Chenming Paper Warns of Deeper 2025 Losses Amid Mill Shutdowns and Business Restructuring

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Shandong Chenming Paper Holdings Co., Ltd. Class H ( (HK:1812) ) has shared an announcement.

Shandong Chenming Paper Holdings has issued a profit warning for 2025, forecasting a net loss attributable to shareholders of between RMB 8.2 billion and RMB 8.8 billion, widening from a loss of RMB 7.41 billion a year earlier, with basic earnings per share expected to fall further into negative territory. The deeper losses are mainly attributed to extensive shutdowns at several key production bases, including year-long suspension at the Zhanjiang facility and prolonged stoppages at the Shouguang, Jiangxi and Jilin plants, which drove higher shutdown and maintenance costs, sharply lower production and sales volumes, and asset impairment charges. In addition, the group exited its finance leasing business in the fourth quarter, triggering impairment and bad-debt provisions on leasing assets, while simultaneously pursuing a turnaround through cost-cutting, process optimisation, development of new products, and negotiations with financial institutions that have reduced financing costs and supported a gradual recovery in operating rates and capacity utilisation.

The most recent analyst rating on (HK:1812) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on Shandong Chenming Paper Holdings Co., Ltd. Class H stock, see the HK:1812 Stock Forecast page.

More about Shandong Chenming Paper Holdings Co., Ltd. Class H

Shandong Chenming Paper Holdings Limited is a major Chinese pulp and paper producer, operating multiple production bases across the country. The company focuses on the manufacture of pulp and various paper products, and is listed in Hong Kong via its H-shares, serving both domestic and export markets within the broader paper and packaging industry.

Average Trading Volume: 1,151,363

Technical Sentiment Signal: Sell

Current Market Cap: HK$4.88B

See more insights into 1812 stock on TipRanks’ Stock Analysis page.

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