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

• Market Cap: HK$4.88B
• 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

Overall financial quality is weak: revenue fell sharply into TTM (~-41.9%) and profitability swung from prior positive years to deep losses with severely negative margins. Balance sheet risk is elevated as leverage rose materially (debt-to-equity up to ~10.19 in TTM) due to a shrinking equity base. The main offset is that operating cash flow and free cash flow remain positive, providing some cushioning despite weakening versus 2020–2021.

Income Statement

Profitability has deteriorated sharply. Revenue declined materially into TTM (Trailing-Twelve-Months) (down ~41.9%), and margins collapsed from positive levels in 2020–2022 to deep losses in 2023–2024, culminating in severely negative gross, operating, and net margins in TTM. The key strength is that the company previously demonstrated the ability to generate solid profitability (2020–2021), but the current trajectory signals significant pricing/cost pressure and weak operating leverage.

Balance Sheet

Leverage is high and rising as equity erodes. Debt-to-equity increased from ~2.0–2.6 (2020–2023) to ~3.45 in 2024 and ~10.19 in TTM, reflecting both higher debt and a much smaller equity base. Returns on equity have swung from modestly positive (2020–2022) to strongly negative (2023–TTM), indicating the balance sheet is under strain. The main positive is that the asset base remains substantial, but the capital structure looks increasingly fragile given ongoing losses.

Cash Flow

Cash generation is a relative bright spot versus earnings. Operating cash flow and free cash flow are positive in every period shown, including TTM, and free cash flow remains positive even as reported profits turned deeply negative. However, cash flow has weakened materially from 2020–2021 levels, and recent growth is negative (free cash flow down modestly in 2024 and TTM). Overall, cash flow resilience helps, but it may be difficult to sustain if weak operating conditions persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.25B	22.73B	26.61B	32.00B	33.02B	30.74B
Gross Profit	-3.25B	584.65M	2.16B	4.63B	7.80B	7.09B
EBITDA	-5.10B	-3.61B	2.52B	4.58B	7.38B	7.62B
Net Income	-6.01B	-7.41B	―	317.36M	2.07B	1.71B
Balance Sheet
Total Assets	52.85B	63.51B	79.49B	84.30B	82.84B	91.58B
Cash, Cash Equivalents and Short-Term Investments	774.14M	5.95B	12.12B	14.08B	14.23B	17.95B
Total Debt	32.58B	31.58B	43.92B	45.09B	45.61B	49.63B
Total Liabilities	47.51B	50.67B	58.39B	60.57B	60.29B	65.78B
Stockholders Equity	3.20B	9.16B	16.69B	19.08B	19.09B	24.28B
Cash Flow
Free Cash Flow	942.94M	2.55B	4.08B	2.56B	7.95B	11.01B
Operating Cash Flow	713.30M	2.62B	4.39B	3.45B	8.58B	11.26B
Investing Cash Flow	-601.46M	465.80M	58.29M	-2.44B	165.72M	-181.04M
Financing Cash Flow	-554.68M	-3.72B	-5.78B	-1.98B	-9.94B	-9.59B

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: Neutral

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 below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.77, and above the 200-day MA of 0.77, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, 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$14.69B	10.77	4.88%	3.92%	1.95%	-9.10%
2002	64 Neutral	HK$1.33B	7.10	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	$35.00B	20.17	3.81%	―	6.14%	134.18%
1812	46 Neutral	HK$4.88B	-0.19	―	―	-76.55%	-966.54%
3363	46 Neutral	HK$165.00M	6.43	2.13%	6.11%	0.80%	81.27%
0731	45 Neutral	HK$277.26M	14.18	11.34%	―	-9.44%	―

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.