China Sunshine Paper Holdings Co. Ltd. (2002) AI Stock Analysis

• Market Cap: HK$1.78B
• Dividend Yield: 2.96%
• Average Volume (3M): 44.22K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.32
• Revenue Growth: -5.66%
• EPS Growth: -56.96%
• Country: HK
• Employees: 4,636
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.08
• Shares Outstanding: 1,065,144,400
• 10 Day Avg. Volume: 41,700
• 30 Day Avg. Volume: 44,221
• PEG Ratio: -0.21
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 23.13
• 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: 64 Neutral
• Price Target: HK$2.00 ▲(18.34% Upside)

The overall stock score of 64 reflects a mixed financial performance with stable gross margins but declining profit margins. The technical analysis indicates cautious sentiment with bearish momentum, while the valuation suggests the stock is undervalued, making it potentially attractive for value investors. The absence of earnings call data and corporate events limits additional insights.

China Sunshine Paper Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

China Sunshine Paper Holdings Company Limited, together with its subsidiaries, produces and sells paper products in the People's Republic of China and internationally. It offers white top linerboard that is used to provide the outer facing surface of the corrugating medium; coated white top linerboards; and core boards that are used as base for various products, such as paper and yarn. The company also provides premium medium papers, which are used to shape corrugated boards into micro flute, profiled flute, center liner, and other products; and specialty papers that are used for medium and high density fiberboards, multi-layer plywood, particle boards and armour layers, surface layers, and bottom layers of artificial boards, as well as preprint products, paper bags, and carton boxes. In addition, it trades in paper products and waste materials; provides transportation, package design, medicine packaging design, and business factoring services; generates and supplies electricity and steam; and operates hotel. The company was founded in 2000 and is based in Weifang, the People's Republic of China.

How the Company Makes Money

China Sunshine Paper Holdings Co. Ltd. generates revenue primarily through the manufacturing and sale of paper products. The company's key revenue streams include the sale of white top linerboard, which is used extensively in packaging applications, and core board, which is essential for producing tubes and cores in different industries. The company benefits from having vertically integrated operations, which help in cost efficiency and quality control. Significant partnerships with suppliers for raw materials, as well as long-term contracts with customers in the packaging and printing industries, also contribute to its earnings. Additionally, the company may engage in export activities, expanding its market reach beyond China and tapping into international demand for quality paper products.

China Sunshine Paper Holdings Co. Ltd. Financial Statement Overview

Summary

China Sunshine Paper Holdings shows a mixed financial performance with stable gross margins but declining profit margins over recent years. While the balance sheet reflects improved leverage and a stable equity ratio, the company's cash flow generation has been inconsistent, impacting its financial health. The firm needs to focus on improving operational efficiency and cash flow management to enhance profitability and financial stability.

Income Statement

Gross profit margin remained relatively stable at around 14.9%, showing resilience despite revenue fluctuations. However, the net profit margin has decreased from 4.7% in 2020 to 3.5% in 2024, indicating pressure on net income despite revenue growth. EBIT margin has significantly declined from 12.5% in 2020 to 4.0% in 2024, while EBITDA margin decreased from 18.8% to 7.6% over the same period, suggesting increased operating costs or decreased operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved slightly from 1.46 in 2020 to 1.05 in 2024, indicating enhanced capital management and reduced leverage risk. Return on equity has decreased from 15.9% in 2020 to 5.8% in 2024, reflecting reduced profitability. The equity ratio remained stable, with a slight increase from 33.2% in 2020 to 40.1% in 2024, showing a steady asset financing structure.

Cash Flow

Free cash flow has been volatile, with a significant decline in free cash flow growth rate from 2019 to recent years, resulting in negative free cash flow in 2022 and 2021. Operating cash flow to net income ratio was 0 in 2024, indicating potential issues in converting sales into actual cash. Historical free cash flow to net income ratios were positive, indicating the ability to generate cash from operations in earlier years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.66B	8.05B	8.36B	9.54B	7.98B	6.67B
Gross Profit	1.17B	1.20B	1.31B	1.16B	1.53B	1.44B
EBITDA	642.68M	613.96M	1.19B	918.92M	1.24B	934.59M
Net Income	173.62M	279.87M	393.31M	205.73M	556.62M	497.71M
Balance Sheet
Total Assets	12.75B	12.11B	12.16B	12.10B	11.03B	9.38B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.15B	1.59B	868.93M	840.09M	613.27M
Total Debt	5.38B	5.11B	5.18B	5.56B	4.71B	4.16B
Total Liabilities	7.35B	6.81B	7.19B	7.68B	6.94B	5.95B
Stockholders Equity	4.94B	4.85B	4.57B	4.09B	3.78B	3.12B
Cash Flow
Free Cash Flow	196.43M	86.51M	870.30M	-111.79M	-50.98M	231.13M
Operating Cash Flow	441.45M	680.54M	1.41B	546.40M	1.07B	936.77M
Investing Cash Flow	-774.08M	-884.63M	-118.01M	-1.13B	-1.39B	-363.22M
Financing Cash Flow	116.11M	-228.69M	-559.81M	607.55M	536.07M	-679.59M

China Sunshine Paper Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2002, the sentiment is Negative. The current price of 1.69 is below the 20-day moving average (MA) of 1.70, below the 50-day MA of 1.75, and below the 200-day MA of 1.85, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.19 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2002.

China Sunshine Paper Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2002	64 Neutral	HK$1.78B	9.49	3.56%	2.96%	-5.66%	-56.96%
2314	62 Neutral	$11.64B	8.54	4.88%	3.99%	1.95%	-9.10%
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$4.64B	―	―	―	-76.55%	-966.54%

China Sunshine Paper Holdings Co. Ltd. Corporate Events

China Sunshine Paper Expands Framework Agreements with Xiamen C&D

China Sunshine Paper Holdings Co. Ltd. has announced revisions to its existing framework agreements with Xiamen C&D Group, enhancing their business relationship. The Supplemental Agreements allow for expanded procurement options and increased annual purchase caps, indicating a strategic move to strengthen supply chain operations and potentially improve market positioning. These transactions, classified as continuing connected transactions under the Listing Rules, require independent shareholder approval due to their scale, highlighting their significance to the company’s strategic operations.

The most recent analyst rating on (HK:2002) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Sunshine Paper Holdings Co. Ltd. stock, see the HK:2002 Stock Forecast page.

China Sunshine Paper Holdings Announces Board Changes

China Sunshine Paper Holdings Co. Ltd. has announced a change in its board of directors, with Ms. Jiao Jie resigning from her position as an independent non-executive director and from various board committees due to personal commitments and other business ventures. The company has expressed gratitude for her contributions. Subsequently, Mr. Sun Junchen has been appointed as the new independent non-executive director, bringing extensive experience in finance and management from various prominent roles in the industry. This leadership change is expected to bring fresh perspectives to the company’s strategic direction.

The most recent analyst rating on (HK:2002) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Sunshine Paper Holdings Co. Ltd. stock, see the HK:2002 Stock Forecast page.

China Sunshine Paper Holdings Announces Board and Committee Roles

China Sunshine Paper Holdings Co. Ltd. announced the composition of its board of directors and their respective roles, which includes a mix of executive, non-executive, and independent non-executive directors. The announcement also detailed the membership of three key board committees: the Audit Committee, Nomination Committee, and Remuneration Committee. This structured governance framework is likely to enhance the company’s operational oversight and strategic decision-making, potentially strengthening its position in the competitive paper manufacturing industry.

The most recent analyst rating on (HK:2002) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Sunshine Paper Holdings Co. Ltd. stock, see the HK:2002 Stock Forecast page.

China Sunshine Paper Holdings Reports Decline in 2025 Interim Financial Results

China Sunshine Paper Holdings Co. Ltd. reported a decrease in its financial performance for the first half of 2025, with revenue dropping by approximately 9.7% and gross profit declining by about 4.9% compared to the same period in 2024. The profit attributable to the company’s owners saw a significant decrease of 56.1%, highlighting challenges in maintaining profitability amidst market conditions.

The most recent analyst rating on (HK:2002) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Sunshine Paper Holdings Co. Ltd. stock, see the HK:2002 Stock Forecast page.

China Sunshine Paper Holdings Announces Upcoming Board Meeting

China Sunshine Paper Holdings Co. Ltd. announced a board meeting scheduled for August 28, 2025, to review and approve the unaudited interim results for the first half of the year and to consider the payment of an interim dividend. This meeting could have implications for the company’s financial performance and shareholder returns, potentially impacting its market positioning and stakeholder interests.

China Sunshine Paper Issues Profit Warning Amid Market Challenges

China Sunshine Paper Holdings Co. Ltd. has issued a profit warning, indicating a significant decrease in profits for the first half of 2025, with expected declines ranging from 55% to 65% compared to the same period in 2024. This downturn is attributed to several factors, including a decrease in paper product sales prices, reduced government subsidies due to lower value-added tax, challenges in the PRC real estate market affecting its subsidiary Sunshine Oji, and fair value losses on financial assets. Despite these challenges, the company maintains that its overall financial health remains stable and expresses optimism about its long-term growth prospects.