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

• Market Cap: HK$1.54B
• Dividend Yield: 3.45%
• Average Volume (3M): 44.22K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.37
• 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 ▲(37.93% 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.

Positive Factors

Vertical Integration

Vertical integration allows China Sunshine Paper Holdings to maintain cost efficiency and quality control, providing a competitive edge in production and enabling better margin management over time.

Stable Gross Margins

Stable gross margins indicate effective cost management and pricing strategies, which can help sustain profitability even when facing revenue volatility.

Improved Leverage

Improved leverage reflects better capital management, reducing financial risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Declining Profit Margins

Declining profit margins suggest increased costs or pricing pressures, which could impact long-term profitability if not addressed.

Inconsistent Cash Flow

Volatile cash flow generation can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Decreased Operational Efficiency

Decreased operational efficiency, as indicated by declining EBIT margins, suggests rising operational costs or inefficiencies, which could erode competitiveness.

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

Company Description

China Sunshine Paper Holdings Co. Ltd. is a leading manufacturer and supplier of paper products in China, specializing in the production of various types of paper, including packaging paper, cultural paper, and specialty paper. Established in 2002, the company operates in the pulp and paper sector and has built a strong reputation for its quality products. With a focus on sustainability and environmental responsibility, China Sunshine Paper is committed to utilizing advanced technology and efficient production processes to meet the growing demand for paper products both domestically and internationally.

How the Company Makes Money

China Sunshine Paper Holdings Co. Ltd. generates revenue primarily through the sale of its diverse range of paper products. Key revenue streams include the production and distribution of packaging paper, which caters to industries such as food and beverage, electronics, and consumer goods. Additionally, the company earns income from cultural paper products, which are used in publishing and stationery. Strategic partnerships with distributors and manufacturers enhance its market reach, while investments in technology and production efficiency help lower costs and improve profit margins. Furthermore, the company benefits from favorable government policies supporting the paper industry, contributing positively to its earnings.

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: 1.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.45 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.64, and below the 200-day MA of 1.78, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 13.62 is Positive, neither overbought nor oversold. The STOCH value of 27.45 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	69 Neutral	HK$12.20B	8.91	4.88%	3.92%	1.95%	-9.10%
2002	64 Neutral	HK$1.54B	8.24	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$26.79B	13.93	3.81%	―	6.14%	134.18%
0731	50 Neutral	HK$301.31M	17.46	11.34%	―	-9.44%	―
3363	48 Neutral	HK$175.00M	6.82	2.13%	6.29%	0.80%	81.27%
1812	47 Neutral	HK$4.76B	-0.16	―	―	-76.55%	-966.54%

China Sunshine Paper Holdings Co. Ltd. Corporate Events

China Sunshine Paper Completes Acquisition and Adjusts Profit Guarantee

China Sunshine Paper Holdings Co. Ltd. announced the completion of an acquisition that increases its equity interest in a target company from 45% to 100%, making it a wholly owned subsidiary. This move consolidates the financial results of the target company into the group’s financials. Additionally, the company has terminated a previous profit guarantee agreement with the vendors and their guarantors, reflecting a strategic shift in its operational agreements.

China Sunshine Paper Holdings to Discuss Key Agreements at Upcoming EGM

China Sunshine Paper Holdings Co. Ltd. has announced an Extraordinary General Meeting (EGM) to be held on December 10, 2025, to discuss and approve two key agreements. The company aims to ratify the Supplemental Purchase Framework Agreement and the Supplemental Sales Framework Agreement with Xiamen C&D Paper & Pulp Group Co., Ltd., which outline transactions and proposed annual caps for 2025 and 2026. These agreements are expected to enhance the company’s operational capabilities and strengthen its market positioning.

China Sunshine Paper Announces Circular Dispatch Delay and EGM Details

China Sunshine Paper Holdings Co. Ltd. announced a delay in the dispatch of a circular related to Supplemental Agreements, originally expected by November 20, 2025, now postponed to November 28, 2025. Additionally, the company’s Extraordinary General Meeting (EGM) is scheduled for December 10, 2025, with a temporary closure of the register of members from December 5 to December 10, 2025, to determine shareholder voting eligibility.

China Sunshine Paper Holdings Engages in Discloseable Financial Transactions

China Sunshine Paper Holdings Co. Ltd., through its subsidiary Century Sunshine, has entered into two entrusted loan agreements with Qicheng Zhihui as the borrower. These agreements are part of a series of financial transactions that require disclosure under Hong Kong’s Listing Rules due to their aggregated value. The loans, totaling RMB50,000,000, are intended for use as general working capital by the borrower, Qicheng Zhihui, and are financed through the company’s internal resources.

China Sunshine Paper Holdings Announces Entrusted Loan Agreement

China Sunshine Paper Holdings Co. Ltd. announced a discloseable transaction involving an entrusted loan agreement through its subsidiary, Century Sunshine. The agreement, dated November 18, 2025, involves a loan of RMB50,000,000 to Qicheng Zhihui, which will be used as general working capital. This transaction is significant as it exceeds certain percentage ratios under the Listing Rules, necessitating reporting and announcement requirements. The move reflects the company’s strategic financial management and its commitment to supporting business operations through internal resources.

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.