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

• Market Cap: HK$1.85B
• Dividend Yield: 2.3%
• Average Volume (3M): 144.25K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.34
• Revenue Growth: -5.61%
• EPS Growth: -34.60%
• Country: HK
• Employees: 4,636
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.09
• Shares Outstanding: 1,065,144,400
• 10 Day Avg. Volume: 47,650
• 30 Day Avg. Volume: 144,250
• PEG Ratio: -0.19
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -178.62
• 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

• Rating: 61 Neutral
• Price Target: HK$2.00 ▲(13.64%Upside)

The overall stock score is primarily impacted by financial performance challenges, including declining profit margins and inconsistent cash flow. Technical analysis indicates bearish momentum, further weighing down the score. Valuation suggests potential undervaluation, providing a positive offset.

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

Company Description

China Sunshine Paper Holdings Co. Ltd., established in 2002, is a leading paper manufacturing company in China, specializing in the production of high-quality paper products. The company primarily operates in the industrial packaging sector, offering a wide range of products including white top linerboard, coated white top linerboard, and core board, which are essential for various packaging applications.

How the Company Makes Money

China Sunshine Paper Holdings Co. Ltd. generates revenue through the production and sale of its paper products. The company's primary revenue streams include the sale of white top linerboard, coated white top linerboard, and core board to manufacturers and businesses in the packaging industry. The firm benefits from economies of scale and extensive distribution networks, which help it maintain competitive pricing while ensuring high product quality. In addition, strategic partnerships with suppliers and customers further enhance its market position and contribute to its earnings.

China Sunshine Paper Holdings Co. Ltd. Financial Statement Overview

Summary

China Sunshine Paper Holdings shows stable gross margins but declining profit margins over recent years. The balance sheet reflects improved leverage and a stable equity ratio. However, cash flow generation has been inconsistent, impacting financial health. Focus is needed on improving operational efficiency and cash flow management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.05B	8.36B	9.54B	7.98B	6.67B
Gross Profit	1.20B	1.31B	1.16B	1.53B	1.44B
EBITDA	613.96M	1.19B	918.92M	1.24B	1.25B
Net Income	279.87M	393.31M	205.73M	556.62M	497.71M
Balance Sheet
Total Assets	12.11B	12.16B	12.10B	11.03B	9.38B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.59B	851.18M	829.57M	613.27M
Total Debt	5.11B	5.18B	5.56B	4.71B	4.16B
Total Liabilities	6.81B	7.19B	7.68B	6.94B	5.95B
Stockholders Equity	4.85B	4.57B	4.09B	3.78B	3.12B
Cash Flow
Free Cash Flow	86.51M	870.30M	-111.79M	-50.98M	231.13M
Operating Cash Flow	680.54M	1.41B	546.40M	1.07B	936.77M
Investing Cash Flow	-884.63M	-118.01M	-1.13B	-1.39B	-363.22M
Financing Cash Flow	-228.69M	-559.81M	607.55M	536.07M	-679.59M

China Sunshine Paper Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.76
• 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 1.76 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.83, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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
2314	71 Outperform	$10.05B	7.66	4.75%	3.85%	4.24%	25.30%
2002	61 Neutral	HK$1.85B	6.07	5.95%	2.30%	-5.61%	-34.60%
Sector *	58 Neutral	HK$17.13B	4.61	-6.43%	5.19%	-3.18%	-62.89%
3363	58 Neutral	HK$200.00M	5.07	3.30%	5.50%	-0.02%	―
2689	56 Neutral	$15.91B	16.04	2.05%	―	9.33%	―
0731	49 Neutral	HK$267.36M	10.86	13.05%	―	-2.96%	―
1812	47 Neutral	€4.15B	―		―	-39.09%	-895.81%

China Sunshine Paper Holdings Co. Ltd. Corporate Events

China Sunshine Paper Holdings Announces Successful AGM Outcomes

China Sunshine Paper Holdings Co. Ltd. successfully held its Annual General Meeting on June 20, 2025, where all proposed resolutions were passed. Key resolutions included the approval of financial statements, declaration of a final dividend, re-election and re-appointment of directors, and granting of mandates for share buybacks and issuances. These outcomes reflect the company’s stable governance and commitment to shareholder returns, potentially strengthening its market position and investor confidence.

China Sunshine Paper Expands Stake in Joint Venture

China Sunshine Paper Holdings Co. Ltd. announced that its subsidiary, Century Sunshine, has acquired a 40% equity interest in a joint venture, making it a wholly-owned subsidiary. This acquisition, valued at RMB85,000,000, will consolidate the joint venture’s financial results into the group’s, potentially enhancing its market position in the specialty paper sector.

China Sunshine Paper Holdings Announces Annual General Meeting and Key Resolutions

China Sunshine Paper Holdings Co. Ltd. has announced its annual general meeting scheduled for June 20, 2025, where key resolutions will be discussed, including the approval of financial statements, declaration of a final dividend, and re-election of directors. The company also seeks authorization to buy back shares, which could impact its market positioning and shareholder value.