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Nine Dragons Paper Holdings Ltd. (HK:2689)
:2689
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Nine Dragons Paper Holdings (2689) AI Stock Analysis

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HK:2689

Nine Dragons Paper Holdings

(OTC:2689)

Rating:59Neutral
Price Target:
HK$4.50
▲(2.27%Upside)
The stock's overall score is primarily influenced by its financial performance, which highlights inconsistent revenue growth and liquidity concerns. Technical analysis indicates strong momentum, but caution is warranted due to overbought signals. The valuation is fair, but the absence of a dividend yield detracts from its appeal. Continued focus on improving financial stability and managing leverage is essential for future growth.

Nine Dragons Paper Holdings (2689) vs. iShares MSCI Hong Kong ETF (EWH)

Nine Dragons Paper Holdings Business Overview & Revenue Model

Company DescriptionNine Dragons Paper Holdings Limited (2689) is a leading paper manufacturing company headquartered in Hong Kong. It specializes in the production of a wide range of paper products, primarily focusing on containerboard, including linerboard, high-performance corrugating medium, and coated duplex board. The company operates several manufacturing facilities across China, the United States, and Vietnam, catering to diverse industries such as packaging, printing, and publishing.
How the Company Makes MoneyNine Dragons Paper Holdings generates revenue primarily through the manufacturing and sale of paper products. The company's key revenue streams include the production of containerboard, which is used extensively in the packaging industry, as well as other paper products like printing and writing paper. The company benefits from strategic partnerships with suppliers and customers, ensuring a steady supply of raw materials and a robust distribution network. Additionally, Nine Dragons leverages its extensive manufacturing capabilities and economies of scale to maintain competitive pricing and high-quality products, which are crucial factors in sustaining its earnings.

Nine Dragons Paper Holdings Financial Statement Overview

Summary
Nine Dragons Paper Holdings shows mixed financials. Revenue growth is inconsistent, and profitability margins are under pressure, despite some 2024 improvements. The balance sheet reflects increased leverage, posing financial risk, while volatile cash flows and negative free cash flow indicate liquidity challenges.
Income Statement
45
Neutral
Nine Dragons Paper Holdings has shown mixed performance in its income statement. While there is a modest increase in total revenue from 2023 to 2024, the revenue growth has been inconsistent over the years, with a decline observed from 2020 to 2023. Gross profit margin improved significantly from 2023 to 2024, indicating better cost management, but net profit margin remains low, reflecting challenges in translating revenue growth into bottom-line profitability. The EBIT and EBITDA margins have improved in 2024 from the previous year, yet they have not reached the higher levels seen in earlier years.
Balance Sheet
55
Neutral
The balance sheet shows a robust increase in total assets over the years, signaling expansion. However, the debt-to-equity ratio has risen, indicating higher leverage risk, which could be a concern if not managed properly. The equity ratio has remained relatively stable, suggesting a consistent capital structure. Return on equity has improved in 2024 as net income turned positive, but it remains lower compared to earlier years, pointing to room for improvement in generating returns for shareholders.
Cash Flow
40
Negative
Cash flow statements reveal a volatile free cash flow, with significant negative free cash flow in recent years, indicating high capital expenditures and potential liquidity concerns. The operating cash flow to net income ratio turned negative in 2024, highlighting inefficiencies in converting profit to cash. While there have been significant cash inflows from financing activities, these are primarily driven by debt, potentially increasing financial risk.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue59.50B56.74B64.54B61.57B51.34B
Gross Profit5.71B1.53B6.99B11.69B9.03B
EBITDA6.18B2.17B6.68B11.31B8.54B
Net Income772.35M-2.38B3.28B7.10B4.17B
Balance Sheet
Total Assets138.37B120.65B107.08B92.17B79.32B
Cash, Cash Equivalents and Short-Term Investments10.68B10.44B9.78B10.15B5.66B
Total Debt69.03B56.76B44.20B34.14B26.31B
Total Liabilities89.89B75.51B59.58B45.78B38.52B
Stockholders Equity48.01B44.65B47.05B45.93B40.37B
Cash Flow
Free Cash Flow-13.61B-10.77B-9.59B-3.54B4.15B
Operating Cash Flow-794.20M6.92B3.03B2.52B8.95B
Investing Cash Flow-12.66B-17.42B-12.32B-5.64B-4.51B
Financing Cash Flow13.67B11.14B8.92B7.63B-7.22B

Nine Dragons Paper Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.40
Price Trends
50DMA
3.29
Positive
100DMA
3.22
Positive
200DMA
3.26
Positive
Market Momentum
MACD
0.23
Negative
RSI
88.77
Negative
STOCH
90.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2689, the sentiment is Positive. The current price of 4.4 is above the 20-day moving average (MA) of 3.55, above the 50-day MA of 3.29, and above the 200-day MA of 3.26, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 88.77 is Negative, neither overbought nor oversold. The STOCH value of 90.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2689.

Nine Dragons Paper Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$2.07B6.815.95%1.49%-5.61%-34.60%
71
Outperform
$12.11B9.234.75%3.79%4.24%25.30%
59
Neutral
HK$20.65B20.522.05%9.33%
47
Neutral
€4.26B
-39.09%-895.81%
44
Neutral
C$980.66M-6.79-13.68%1.76%17.37%-32.98%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2689
Nine Dragons Paper Holdings
4.40
1.44
48.65%
HK:2002
China Sunshine Paper Holdings Co. Ltd.
1.94
-0.13
-6.28%
HK:2314
Lee & Man Paper Manufacturing
2.82
0.56
24.94%
HK:1812
Shandong Chenming Paper Holdings Co., Ltd. Class H
0.74
-0.93
-55.69%

Nine Dragons Paper Holdings Corporate Events

Nine Dragons Paper Clarifies 2016 Share Option Scheme in 2024 Annual Report
Jun 27, 2025

Nine Dragons Paper Holdings Limited has released a supplemental announcement regarding its 2024 Annual Report, providing additional details on its 2016 Share Option Scheme. The company has not granted any options under this scheme for the year ended June 30, 2024, with 466,622,081 shares available for grant. This represents approximately 9.94% of the company’s total ordinary shares. The announcement clarifies the terms of the option scheme, including the exercise period and acceptance process, without affecting other information in the annual report.

The most recent analyst rating on (HK:2689) stock is a Hold with a HK$3.80 price target. To see the full list of analyst forecasts on Nine Dragons Paper Holdings stock, see the HK:2689 Stock Forecast page.

Nine Dragons Paper Announces Executive Committee Changes
Apr 30, 2025

Nine Dragons Paper Holdings Limited announced a change in the composition of its Executive Committee, effective April 30, 2025. Mr. Lau Chun Shun will step down due to internal job relocation, and Mr. Ken Liu, an executive director, will join the committee. This adjustment in the board’s structure may influence the company’s strategic direction and operational efficiency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025