C&D Newin Paper & Pulp Corporation Limited (0731) AI Stock Analysis

• Market Cap: HK$297.07M
• Dividend Yield: N/A
• Average Volume (3M): 531.08K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.04
• Revenue Growth: -9.44%
• EPS Growth: N/A
• Country: HK
• Employees: 735
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.03
• Shares Outstanding: 1,414,600,800
• 10 Day Avg. Volume: 1,086,400
• 30 Day Avg. Volume: 531,080
• PEG Ratio: -0.12
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -6.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.22 ▼(-0.91% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and high leverage. Technical analysis shows bullish momentum but warns of overbought conditions. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Sustainability Focus

Commitment to sustainability and innovation positions the company well in a market increasingly valuing eco-conscious solutions.

Strategic Partnerships

Strategic partnerships help optimize production costs and expand market reach, supporting long-term revenue stability.

Long-term Contracts

Long-term contracts provide predictable revenue streams, enhancing financial stability and planning capabilities.

Negative Factors

Declining Revenues

Consistent revenue decline indicates challenges in market demand or competitive positioning, impacting long-term growth prospects.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth.

Negative Cash Flow

Negative cash flow indicates operational challenges and may hinder the company's ability to fund operations and growth initiatives.

C&D Newin Paper & Pulp Corporation Limited Business Overview & Revenue Model

Company Description

Samson Paper Holdings Limited, an investment holding company, engages in the manufacture and trade of paper products in Hong Kong, the People's Republic of China, Singapore, Korea, and internationally. It offers printing, packaging, specialty, copy, and waste papers. The company was founded in 1965 and is headquartered in Central, Hong Kong.

How the Company Makes Money

C&D Newin Paper & Pulp Corporation Limited generates revenue primarily through the sale of its paper and pulp products to various industries. The company's key revenue streams include the production of packaging materials, printing papers, and specialty papers, which are sold both domestically and internationally. Additionally, C&D Newin engages in long-term contracts with major clients, ensuring a steady flow of income. The company also benefits from strategic partnerships with suppliers and distributors, which help in optimizing production costs and expanding market reach. Factors contributing to its earnings include market demand for sustainable products, efficient production processes, and a well-established distribution network.

C&D Newin Paper & Pulp Corporation Limited Financial Statement Overview

Summary

C&D Newin Paper & Pulp Corporation Limited faces financial challenges characterized by declining revenues, negative profit margins, and high leverage. Despite some signs of improvement in 2024, the company needs to address operational inefficiencies and cash flow issues to stabilize and grow.

Income Statement

The company has faced significant revenue declines over recent years, with a noticeable reduction from 2020 to 2024. Gross profit margins are negative, indicating costs exceed revenues. Net income has also been negative, though there is some improvement in 2024. EBIT and EBITDA margins have fluctuated, reflecting operational inefficiencies.

Balance Sheet

The balance sheet highlights high leverage with a concerning debt-to-equity ratio due to increased total debt over the years. Despite a slight improvement in stockholder equity in 2024, the equity ratio remains low, indicating potential financial instability. However, the company has managed to slightly increase cash reserves.

Cash Flow

Cash flow statements show volatility with negative free cash flow over several periods, indicating challenges in generating sufficient cash from operations. The operating cash flow has been inconsistent, and the free cash flow to net income ratio suggests further cash generation issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.33B	1.37B	1.39B	1.23B	1.71B
Gross Profit	-13.27M	-20.11M	-73.14M	97.07M	26.92M
EBITDA	-20.43M	-41.12M	-116.84M	534.61M	-1.39B
Net Income	24.59M	-128.80M	-201.17M	472.49M	-2.60B
Balance Sheet
Total Assets	1.09B	1.17B	1.32B	1.58B	1.10B
Cash, Cash Equivalents and Short-Term Investments	42.75M	27.41M	12.90M	5.27M	195.07M
Total Debt	637.12M	619.12M	469.29M	314.98M	415.89M
Total Liabilities	896.10M	993.50M	1.00B	1.07B	3.28B
Stockholders Equity	197.63M	179.44M	315.79M	508.86M	-2.18B
Cash Flow
Free Cash Flow	-53.13M	-66.45M	-111.01M	-652.12M	208.28M
Operating Cash Flow	-39.19M	-48.36M	-69.86M	-593.81M	209.08M
Investing Cash Flow	-13.27M	-17.86M	-41.15M	-216.77M	-53.07M
Financing Cash Flow	64.99M	80.40M	104.38M	553.04M	-211.01M

C&D Newin Paper & Pulp Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0731, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 105.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0731.

C&D Newin Paper & Pulp Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2314	69 Neutral	$11.64B	8.54	4.88%	3.55%	1.95%	-9.10%
2002	64 Neutral	HK$1.78B	9.49	3.56%	2.99%	-5.66%	-56.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2689	59 Neutral	$25.24B	13.26	3.81%	―	6.14%	134.18%
3363	58 Neutral	HK$185.00M	7.21	2.13%	5.95%	0.80%	81.27%
0731	50 Neutral	HK$297.07M	17.21	11.34%	―	-9.44%	―
1812	47 Neutral	HK$4.61B	―	―	―	-76.55%	-966.54%

C&D Newin Paper & Pulp Corporation Limited Corporate Events

C&D Newin Paper & Pulp Announces CFO Transition

C&D Newin Paper & Pulp Corporation Limited announced a change in its executive team with the resignation of Mr. Lin Henghui as Chief Financial Officer, effective November 21, 2025, due to other work commitments. The company has appointed Ms. Chen Yaling, who brings over 19 years of experience in accounting and finance, as the new Chief Financial Officer. This leadership transition is expected to maintain the company’s financial stability and strategic direction.

C&D Newin Paper & Pulp Simplifies Shareholding Structure

C&D Newin Paper & Pulp Corporation Limited announced a change in the shareholding structure of its controlling shareholder, HK Paper Sources Co., Limited. This change involved HK Paper Sources acquiring 55% of NCD Investment Holding Limited from Glenfor Investment Holding Limited, resulting in NCD becoming a wholly-owned subsidiary of HK Paper Sources. The acquisition aims to simplify the shareholding structure and is not expected to impact the control and management of the company.

C&D Newin Paper & Pulp Reports Increased Losses in H1 2025

C&D Newin Paper & Pulp Corporation Limited reported its unaudited interim results for the first half of 2025, showing a decrease in revenue to HK$639,997,000 compared to the same period in 2024. The company experienced a loss from operations of HK$28,849,000, which was higher than the previous year’s loss, indicating ongoing financial challenges. Despite the revenue decline, the company continues to invest in research and development, as seen in the increased expenses in this area. The financial results highlight the company’s struggle with rising costs and competitive pressures in the market.