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

• Market Cap: HK$1.44B
• Dividend Yield: 3.45%
• Average Volume (3M): 44.22K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.25
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$1.50 ▲(4.90% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is driven primarily by mixed financial performance—declining operating profitability and inconsistent cash generation—partly offset by improved leverage and a stronger equity ratio. Technicals are subdued with the price below key moving averages and negative MACD, while valuation is a clear positive due to the low P/E and a ~3.7% dividend yield.

Positive Factors

Improving Leverage

Lower leverage and a higher equity ratio materially improve financial flexibility over the medium term. Reduced debt burden supports capacity for capital expenditure, sustainability investments, or opportunistic M&A, and lowers refinancing risk during cyclical downturns.

Stable Gross Margin

A consistent gross margin implies durable cost competitiveness or pricing power in core product lines. This stability provides a margin floor that helps absorb revenue volatility and supports long-term profitability if operational efficiency is restored at the EBIT level.

Diversified Product Mix & Tech Focus

A broad product portfolio across packaging, cultural and specialty paper reduces exposure to any single end-market. Continued investment in technology and sustainability aligns the company with structural demand (packaging growth, regulatory sustainability trends), supporting durable market positioning.

Negative Factors

Declining Operating Margins

Material compression in EBIT and EBITDA margins versus prior years signals structural cost or pricing pressure. Sustained lower operating profitability reduces internal funding for capex and dividends, weakens return on capital, and increases vulnerability to raw material or energy price shocks.

Weak Cash Conversion

Volatile and occasionally negative free cash flow, plus poor OCF-to-net-income conversion, constrain the company's ability to self-fund investments, reduce leverage, and sustain dividends. Persistent cash conversion issues raise refinancing and liquidity risks over cycles.

Eroding Growth and Returns

Negative revenue and steep EPS decline indicate weakening demand or margin-driven earnings erosion. Combined with ROE falling from 15.9% (2020) to 5.8% (2024), this points to deteriorating capital efficiency and a challenging path to restore durable shareholder returns without structural fixes.

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 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

Mixed fundamentals: gross margin held near ~14.9%, but profitability has weakened (net margin down to 3.5% in 2024; EBIT margin down to 4.0%; EBITDA margin down to 7.6%). Balance sheet leverage improved (debt-to-equity 1.05 vs 1.46 in 2020) and equity ratio rose to 40.1%, but cash flow quality is a concern with volatile/negative free cash flow in 2021–2022 and operating cash flow to net income at 0 in 2024.

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: 1.43
• 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 1.43 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.36, and below the 200-day MA of 1.67, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.37 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
2314	69 Neutral	HK$16.62B	12.19	4.88%	3.92%	1.95%	-9.10%
2002	64 Neutral	HK$1.44B	7.67	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	$41.43B	11.68	3.81%	―	6.14%	134.18%
1812	46 Neutral	HK$5.51B	-0.22	―	―	-76.55%	-966.54%
3363	46 Neutral	HK$182.50M	7.12	2.13%	6.11%	0.80%	81.27%
0731	45 Neutral	HK$240.48M	13.93	11.34%	―	-9.44%	―

China Sunshine Paper Holdings Co. Ltd. Corporate Events

China Sunshine Paper Revamps Board with Director Resignations and New Appointments

China Sunshine Paper Holdings has announced boardroom changes effective 29 January 2026, with non-executive director Zhang Xiaohui and independent non-executive director Wang Zefeng resigning due to personal engagements and relinquishing their roles on the remuneration, nomination and audit committees. Both departing directors stated they had no claims against the company or disagreements with the board, while the company simultaneously appointed industry veteran Chen Dongxu as a non-executive director and Li Hengyuan as an independent non-executive director, moves that refresh the board’s composition and committee leadership and may influence the group’s governance and strategic oversight without disrupting continuity. Mr. Chen brings over three decades of management experience, including senior roles at Shanghai-listed Xiamen C&D Inc., and will serve a three-year term without director’s service fees, underscoring a focus on experienced oversight and alignment with Hong Kong listing requirements.

The most recent analyst rating on (HK:2002) stock is a Hold with a HK$1.00 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 Details Board and Committee Structure

China Sunshine Paper Holdings Co. Ltd. has disclosed the current composition of its board of directors, listing its executive, non-executive and independent non-executive members, including Chairman Wang Dongxing, Vice Chairman Shi Weixin and General Manager Wang Changhai. The company has also outlined the membership and leadership of its three key board committees—Audit, Nomination and Remuneration—clarifying governance responsibilities among directors, a move that underscores its corporate governance framework and provides greater transparency for shareholders and other stakeholders.

The most recent analyst rating on (HK:2002) stock is a Hold with a HK$1.00 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 Approves Key Agreements at Extraordinary General Meeting

China Sunshine Paper Holdings Co. Ltd. announced the successful results of its Extraordinary General Meeting held on December 10, 2025, where key resolutions were unanimously approved. These resolutions included the ratification of supplemental purchase and sales framework agreements with Xiamen C&D Paper & Pulp Group Co., Ltd., which are expected to enhance the company’s operational capabilities and market positioning for the years ending 2025 and 2026.

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 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.

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 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.

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 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.

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 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.

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 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.

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.