Shandong Chenming Paper Holdings Co., Ltd. Class H (1812) AI Stock Analysis

• Market Cap: HK$4.93B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -76.55%
• EPS Growth: -966.54%
• Country: HK
• Employees: 9,594
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.81
• Shares Outstanding: 528,305,240
• 10 Day Avg. Volume: 1,069,300
• 30 Day Avg. Volume: 1,016,175
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 1.34
• 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: 46 Neutral
• Price Target: HK$0.75 ▼(-3.25% Downside)

The score is held down primarily by weak financial performance: steep revenue decline, a severe shift into losses, and sharply rising leverage as equity erodes. Technicals are only mildly constructive (neutral RSI/Stoch but slightly negative MACD and price below the 100DMA), and valuation is constrained by a negative P/E with no dividend yield data to offset risk.

Positive Factors

Cash Flow Resilience

Despite financial challenges, positive cash flow indicates the company's ability to generate liquidity, providing a buffer against short-term financial stress.

Governance Enhancements

The establishment of new governance committees suggests a focus on improving decision-making and strategic oversight, potentially enhancing operational efficiency and stakeholder confidence.

Asset Divestment Strategy

Divesting non-core assets can streamline operations and improve financial focus, potentially leading to better resource allocation and financial health.

Negative Factors

Revenue Decline

A significant drop in revenue indicates challenges in market demand or competitive positioning, impacting long-term growth prospects and profitability.

Rising Leverage

Increased leverage heightens financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Profitability Deterioration

Severely negative margins reflect cost pressures and weak pricing power, challenging the company's ability to return to profitability without significant operational improvements.

Shandong Chenming Paper Holdings Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shandong Chenming Paper Holdings Co., Ltd. Class H (1812) is a prominent Chinese company engaged in the production and distribution of paper products. The company operates within the paper manufacturing industry and offers a wide range of products, including paper for printing and writing, paperboard, and specialty paper. As one of the largest paper producers in China, Shandong Chenming Paper has a significant presence in both domestic and international markets, contributing to its robust industry standing.

How the Company Makes Money

Shandong Chenming Paper Holdings Co., Ltd. generates revenue primarily through the sale of its diverse paper product offerings. The company's revenue streams include the domestic and international sale of paper for printing and writing, paperboard used in packaging, and specialty papers tailored for specific industrial applications. Shandong Chenming Paper benefits from economies of scale due to its large production capacity, which enables competitive pricing and extensive market reach. Furthermore, the company may engage in strategic partnerships and collaborations to enhance its distribution networks and expand its market presence, thus contributing to its revenue growth.

Shandong Chenming Paper Holdings Co., Ltd. Class H Financial Statement Overview

Summary

Shandong Chenming Paper Holdings Co., Ltd. faces multiple financial challenges. Revenue and profitability have declined, and the company exhibits high leverage with a shrinking equity base. While the company is generating free cash flow, the overall cash flow trend is negative. Addressing operational inefficiencies and reducing debt levels should be key priorities for improving financial stability and performance.

Income Statement

The income statement shows a declining revenue trend from 2020 to 2024. Gross profit margin decreased significantly over recent years, reflecting reduced profitability. Net income data for more recent years is missing, but past years showed shrinking margins, indicating potential challenges in maintaining profitability. The company's EBIT and EBITDA margins have shown volatility, with EBIT turning negative in 2023, signaling operational challenges.

Balance Sheet

The balance sheet indicates high leverage, with a consistently high debt-to-equity ratio over the years. Stockholders' equity has decreased significantly, while total debt remains high, indicating potential financial risk. The equity ratio has decreased, reflecting reduced stability in asset financing through equity. The company needs to address these leverage issues to ensure long-term financial health.

Cash Flow

The cash flow statement shows a declining trend in operating cash flow, indicating potential challenges in generating cash from core operations. Free cash flow has also decreased, although it remains positive, which is a positive sign. However, the free cash flow to net income ratio cannot be assessed due to missing net income data in recent years. Overall, cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.37B	22.73B	26.61B	32.00B	33.02B	30.74B
Gross Profit	-3.29B	584.65M	2.16B	4.63B	7.80B	7.09B
EBITDA	-5.25B	-3.61B	2.52B	4.58B	7.38B	7.62B
Net Income	-6.21B	-7.41B	―	317.36M	2.07B	1.71B
Balance Sheet
Total Assets	57.77B	63.51B	79.49B	84.30B	82.84B	91.58B
Cash, Cash Equivalents and Short-Term Investments	846.15M	5.95B	12.12B	14.08B	14.23B	17.95B
Total Debt	35.61B	31.58B	43.92B	45.09B	45.61B	49.63B
Total Liabilities	51.93B	50.67B	58.39B	60.57B	60.29B	65.78B
Stockholders Equity	3.49B	9.16B	16.69B	19.08B	19.09B	24.28B
Cash Flow
Free Cash Flow	936.21M	2.55B	4.08B	2.56B	7.95B	11.01B
Operating Cash Flow	707.10M	2.62B	4.39B	3.45B	8.58B	11.26B
Investing Cash Flow	-430.89M	465.80M	58.29M	―	165.72M	―
Financing Cash Flow	-313.60M	-3.72B	-5.78B	―	―	―

Shandong Chenming Paper Holdings Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1812, the sentiment is Positive. The current price of 0.77 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.75, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1812.

Shandong Chenming Paper Holdings Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2314	69 Neutral	HK$13.31B	9.76	4.88%	3.92%	1.95%	-9.10%
2002	64 Neutral	HK$1.49B	7.95	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	HK$31.72B	16.67	3.81%	―	6.14%	134.18%
0731	50 Neutral	HK$289.99M	16.80	11.34%	―	-9.44%	―
1812	46 Neutral	HK$4.93B	-0.18	―	―	-76.55%	-966.54%
3363	46 Neutral	HK$175.00M	6.82	2.13%	6.11%	0.80%	81.27%

Shandong Chenming Paper Holdings Co., Ltd. Class H Corporate Events

Shandong Chenming Paper Clears 2025 Second EGM With Full Shareholder Backing

Shandong Chenming Paper Holdings Limited reported the results of its second extraordinary general meeting for 2025, which was convened on 31 December 2025 in Shouguang, Shandong Province, with shareholders able to participate both physically and via online voting platforms. The meeting, organized by the board and chaired by chairman Jiang Yanshan, met all relevant legal and regulatory requirements, drew 567 shareholders or proxies representing 17.9% of voting share capital, and faced no objections, voting changes, or mandatory abstentions on the proposed resolutions, underscoring procedural compliance and shareholder support for the company’s current governance and strategic direction.

The most recent analyst rating on (HK:1812) stock is a Hold with a HK$0.74 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.

Shandong Chenming Paper Holdings Announces EGM to Discuss Asset Divestment

Shandong Chenming Paper Holdings Co., Ltd. has announced the scheduling of its 2025 second extraordinary general meeting (EGM) on December 31, 2025. The primary agenda of this meeting is to pass a resolution regarding the divestment of assets related to its finance leasing business, which could potentially impact the company’s operational focus and financial strategy.

Shandong Chenming Announces Major Disposal of Equity Interests

Shandong Chenming Paper Holdings Co., Ltd. has announced a very substantial disposal involving the sale of its entire equity interest in certain target companies for RMB3,336.353 million. This transaction will result in the target companies ceasing to be subsidiaries of Shandong Chenming, impacting its consolidated financial statements. The disposal requires shareholder approval and is subject to several conditions, highlighting its significance under the Hong Kong Listing Rules.

Shandong Chenming Paper Announces Asset Impairment Provisions for 2025

Shandong Chenming Paper Holdings Limited announced a provision for asset impairment for the first three quarters of 2025, totaling RMB 178,226.88. This provision includes impairments on accounts receivable, other receivables, financial leasing business, inventory, and fixed assets. The decision reflects the company’s adherence to accounting standards and a prudent approach to financial management, potentially impacting its financial statements and signaling caution to stakeholders about the current economic conditions affecting its operations.

Shandong Chenming Paper Announces Change in Authorized Representative

Shandong Chenming Paper Holdings Limited announced a change in its authorized representative following the resignation of Mr. Hu Changqing. Mr. Jiang Yanshan, an executive director, has been appointed as the new authorized representative, effective from 28 October 2025, aligning with the company’s governance and compliance requirements.

Shandong Chenming Paper Reports Significant Financial Losses in Q3 2025

Shandong Chenming Paper Holdings Co., Ltd. has released its unaudited third quarterly report for 2025, revealing significant financial challenges. The company reported a dramatic decrease in revenue by 79.10% and a net loss attributable to shareholders of RMB 2.15 billion, marking a 191.02% decline compared to the previous year. The report highlights a substantial decrease in net cash flows from operating activities by 70.53% and a significant drop in owners’ equity by 65.08%, indicating ongoing financial difficulties and potential implications for stakeholders.

Shandong Chenming Paper Announces Board Composition and Committee Roles

Shandong Chenming Paper Holdings Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement includes the structure of four special board committees, which are crucial for the company’s governance and strategic decision-making, potentially impacting its operational efficiency and stakeholder confidence.

Shandong Chenming Paper Provides Significant Loan Guarantees for Operational Resumption

Shandong Chenming Paper Holdings Co., Ltd. announced its decision to provide mortgage guarantees for a syndicated loan of RMB2.31 billion to Weifang Xingchen for the company’s resumption of work and production. Additionally, the company will provide a joint and several liability guarantee for a loan to Jilin Xingchen. These guarantees are part of a discloseable transaction under the Hong Kong Stock Exchange’s Listing Rules, requiring reporting and announcement but exempt from shareholder approval. This move is expected to support the company’s operational resumption and strengthen its financial positioning.

Shandong Chenming Paper Announces Board Changes at 2025 Extraordinary Meeting

Shandong Chenming Paper Holdings Co., Ltd. held its 2025 first extraordinary general meeting, during which new directors were appointed, a new chairman of the board was selected, and changes to the board’s committee memberships were made. The meeting, which complied with relevant legal and regulatory requirements, saw participation from a significant number of shareholders, with no objections to the proposed resolutions, indicating stable governance and shareholder alignment.

Shandong Chenming Paper to Review Nine-Month Financial Results

Shandong Chenming Paper Holdings Limited has announced a board meeting scheduled for October 30, 2025, to review and approve the unaudited financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and potentially influence its market positioning and stakeholder confidence.

Shandong Chenming Paper to Revamp Governance and Elect New Board Members

Shandong Chenming Paper Holdings Co., Ltd. has announced its 2025 first extraordinary general meeting to discuss and approve several resolutions aimed at amending governance rules and electing new board members. These changes, including adjustments to the company’s governance structure and articles of association, are expected to enhance the company’s decision-making processes and strengthen its board with new executive, non-executive, and independent directors.

Shandong Chenming Paper Announces New Board Election and Governance Changes

Shandong Chenming Paper Holdings Co., Ltd. has announced the election of its eleventh session of the Board, set to take place at the extraordinary general meeting in October 2025. The new Board will consist of 11 directors, including executive, non-executive, and independent non-executive directors, with a term of three years. The company is also proposing amendments to its Articles of Association and the abolishment of its Supervisory Committee. These changes are expected to streamline governance and enhance operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

Shandong Chenming Paper Secures Syndicated Loan to Boost Operations

Shandong Chenming Paper Holdings Co., Ltd. has announced a potential transaction involving guarantees to support its operational funding needs. To facilitate the resumption of work and production, the company has partnered with Weifang Xingchen, a state-owned entity, to secure a syndicated loan of RMB2.31 billion. The loan will be used to enhance the company’s operational capabilities and resolve debt risks. Subsidiaries of the company, Shouguang Kunhe and Chenming Leasing, propose to provide mortgage guarantees for the loan, while Jilin Chenming will offer guarantees for additional funding needs at the Jilin base. These measures are aimed at ensuring the smooth continuation of the company’s operations.

Shandong Chenming Paper Enhances Governance with New Audit Committee Rules

Shandong Chenming Paper Holdings Co., Ltd. has announced the implementation of new rules for its Board’s Audit Committee, aimed at enhancing the decision-making function and governance structure. The Audit Committee will oversee financial disclosures, internal and external audits, and internal control systems, ensuring effective supervision and coordination. This move is expected to strengthen the company’s governance and improve transparency, potentially impacting its market positioning positively.

Shandong Chenming Paper Enhances Governance with New Nomination Committee

Shandong Chenming Paper Holdings Co., Ltd. has established a Nomination Committee to enhance its corporate governance by regulating the appointment of directors and senior management. The committee is tasked with formulating selection standards and procedures, ensuring board diversity, and making recommendations on appointments, with the aim of improving board efficiency and aligning with the company’s strategic goals.

Shandong Chenming Paper Enhances Governance with New Remuneration Committee

Shandong Chenming Paper Holdings Co., Ltd. has established a Remuneration and Assessment Committee to enhance corporate governance by setting standards for evaluating and compensating its directors and senior management. This move aims to create a transparent and structured approach to remuneration, aligning with corporate goals and industry standards, which could improve stakeholder confidence and operational efficiency.

Shandong Chenming Paper Forms Strategic and Sustainable Development Committee

Shandong Chenming Paper Holdings Co., Ltd. has established a Strategic and Sustainable Development Committee to enhance its long-term strategic planning and sustainable development efforts. This committee will focus on major investment decisions, ESG (Environmental, Social, and Governance) initiatives, and compliance with national and local regulations, aiming to strengthen the company’s governance structure and decision-making processes.