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

• Market Cap: HK$254.63M
• Dividend Yield: N/A
• Average Volume (3M): 531.08K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.02
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.17 ▼(-23.18% Downside)

The score is held down primarily by weak financial performance (declining revenue, negative margins, high leverage, and volatile/negative free cash flow). Technicals are also bearish with price below key moving averages and negative MACD, only partially offset by oversold RSI/stochastic. Valuation appears moderate (P/E ~14.18) but lacks dividend support and is constrained by poor fundamentals.

Positive Factors

Diversified Revenue Streams & Contracts

Multiple end-markets (packaging, printing, specialty papers) and explicit long-term client contracts provide a structurally diversified revenue base. This lowers single-market exposure and supports steadier demand and cash flow over months, improving resilience versus narrow-product peers.

Sustainability and Process Innovation

A company focus on sustainability and advanced production technology aligns with durable structural trends toward eco-friendly packaging. This can preserve customer relationships, support price premiums or contract wins, and enable cost reductions from efficiency gains over the medium term.

Modest Balance Sheet Improvements in 2024

Incremental increases in equity and cash reserves reduce immediate liquidity strain and give management more flexibility to address operations or fund needed capex. While small, this improvement materially lowers short-term default risk and buys time to execute structural fixes.

Negative Factors

Multi-year Revenue Decline

Sustained top-line contraction erodes scale, weakens negotiating leverage with suppliers/customers, and magnifies fixed-cost burdens. If revenue trends persist, the company faces ongoing margin pressure and reduced ability to fund investments or turnaround initiatives from internal cash.

Negative Gross Profit and Net Losses

Persistently negative gross margins indicate core production costs exceed revenues, signaling structural cost or pricing issues. Without durable margin recovery through cost restructuring or price power, the business model cannot sustainably generate operating earnings or internal financing.

Volatile & Negative Free Cash Flow

Repeated negative free cash flow and inconsistent operating cash flows undermine the firm's capacity to fund operations, invest, or reduce leverage internally. This structural cash-generation weakness increases dependence on external financing and raises refinancing and solvency risk over the medium term.

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

Weak fundamentals overall: multi-year revenue decline, negative gross profit and net income, and operational inefficiencies. Balance sheet leverage remains high with a low equity ratio, and cash flows are volatile with negative free cash flow in multiple periods, despite some improvement signs in 2024.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	1.33B	1.37B	1.39B	1.23B	1.71B
Gross Profit	-9.58M	-13.27M	-20.11M	-73.14M	97.07M	26.92M
EBITDA	-25.64M	-20.43M	-41.12M	-116.84M	534.61M	-1.39B
Net Income	340.00K	24.59M	-128.80M	-201.17M	472.49M	-2.60B
Balance Sheet
Total Assets	1.12B	1.09B	1.17B	1.32B	1.58B	1.10B
Cash, Cash Equivalents and Short-Term Investments	17.02M	42.75M	27.41M	12.90M	5.27M	195.07M
Total Debt	657.77M	637.12M	619.12M	469.29M	314.98M	415.89M
Total Liabilities	957.32M	896.10M	993.50M	1.00B	1.07B	3.28B
Stockholders Equity	162.38M	197.63M	179.44M	315.79M	508.86M	-2.18B
Cash Flow
Free Cash Flow	-27.20M	-53.13M	-66.45M	-111.01M	-652.12M	208.28M
Operating Cash Flow	-13.15M	-39.19M	-48.36M	-69.86M	-593.81M	209.08M
Investing Cash Flow	-13.99M	-13.27M	-17.86M	-41.15M	-216.77M	-53.07M
Financing Cash Flow	-12.53M	64.99M	80.40M	104.38M	553.04M	-211.01M

C&D Newin Paper & Pulp Corporation Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0731, the sentiment is Negative. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.21, and above the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 43.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	HK$15.33B	11.37	4.88%	3.92%	1.95%	-9.10%
2002	64 Neutral	HK$1.40B	7.61	3.56%	3.45%	-5.66%	-56.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2689	59 Neutral	$38.48B	20.22	3.81%	―	6.14%	134.18%
1812	46 Neutral	HK$4.90B	-0.18	―	―	-76.55%	-966.54%
3363	46 Neutral	HK$167.50M	6.53	2.13%	6.11%	0.80%	81.27%
0731	45 Neutral	HK$254.63M	14.75	11.34%	―	-9.44%	―

C&D Newin Paper & Pulp Corporation Limited Corporate Events

C&D Newin Paper & Pulp Announces Director’s Passing and Boardroom Reshuffle

C&D Newin Paper & Pulp Corporation Limited announced the passing of independent non-executive director and audit committee chairman Ernest Wong Yiu Kit, leaving the board and audit committee temporarily non-compliant with Hong Kong Listing Rules regarding the minimum number of independent directors and audit committee members. The company said it will use its best endeavours to appoint a new independent non-executive director and audit committee chair within the prescribed three-month period, and will update the market when a suitable candidate is identified. Separately, chairman and non-executive director Zhang Xiaohui has resigned from the board and its remuneration and nomination committees, as well as from his role as an authorised representative, citing personal engagements and confirming no disagreement with the board. The board has appointed Chen Dongxu as the new chairman, non-executive director, committee member and authorised representative with effect from 29 January 2026, restoring compliance with the requirement to have two authorised representatives and signalling a swift leadership transition amid the broader boardroom reshuffle.

The most recent analyst rating on (HK:0731) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on C&D Newin Paper & Pulp Corporation Limited stock, see the HK:0731 Stock Forecast page.

C&D Newin Paper & Pulp Updates Board and Committee Composition

C&D Newin Paper & Pulp Corporation Limited has announced an updated composition of its board of directors effective 29 January 2026, comprising two executive directors, including Chief Executive Officer Mr. Huang Tiansheng, two non-executive directors, and two independent non-executive directors, reflecting a balanced governance structure for a Hong Kong-listed paper and pulp company. The board has also confirmed the structure and membership of its three key committees—Audit, Remuneration and Nomination—with independent non-executive directors chairing the Audit and Remuneration Committees and holding multiple committee roles, a setup that underscores an emphasis on independent oversight, corporate governance, and transparent decision-making for shareholders and other stakeholders.

The most recent analyst rating on (HK:0731) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on C&D Newin Paper & Pulp Corporation Limited stock, see the HK:0731 Stock Forecast page.

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.