Nine Dragons Paper Holdings (2689) AI Stock Analysis

• Market Cap: $35.00B
• Dividend Yield: N/A
• Average Volume (3M): 12.68M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.26
• Revenue Growth: 6.14%
• EPS Growth: 134.18%
• Country: HK
• Employees: 25,410
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): N/A
• Shares Outstanding: 4,692,220,700
• 10 Day Avg. Volume: 12,039,682
• 30 Day Avg. Volume: 12,678,575
• PEG Ratio: 0.06
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.86
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 13.83
• Enterprise Value/Ebitda: 13.87
• 1Y Price Target: $7.65
• Price Target Upside: -6.66% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$4.50 ▼(-45.12% Downside)

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 Business Overview & Revenue Model

Company Description

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, manufactures and sells packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also distributes its products in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited is a subsidiary of Best Result Holdings Limited.

How the Company Makes Money

Nine 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

The company shows inconsistent revenue growth and low profitability margins, despite some improvement in 2024. The balance sheet indicates increased leverage risk, and cash flow volatility suggests liquidity challenges. Overall, the financial performance reflects a need for better profitability and debt management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.24B	63.24B	59.50B	56.74B	64.54B	61.57B
Gross Profit	7.25B	7.25B	5.71B	1.53B	6.99B	11.69B
EBITDA	7.22B	7.24B	6.18B	2.17B	6.68B	11.31B
Net Income	2.17B	2.17B	772.35M	-2.38B	3.28B	7.10B
Balance Sheet
Total Assets	149.04B	149.04B	138.37B	120.65B	107.08B	92.17B
Cash, Cash Equivalents and Short-Term Investments	11.27B	11.27B	10.68B	10.44B	9.78B	10.15B
Total Debt	77.18B	77.18B	69.03B	56.76B	44.20B	34.14B
Total Liabilities	98.43B	98.43B	89.89B	75.51B	59.58B	45.78B
Stockholders Equity	50.10B	50.10B	48.01B	44.65B	47.05B	45.93B
Cash Flow
Free Cash Flow	-2.49B	0.00	-13.61B	-10.77B	-9.59B	-3.54B
Operating Cash Flow	4.27B	0.00	-794.20M	6.92B	3.03B	2.52B
Investing Cash Flow	-6.72B	0.00	-12.66B	-17.42B	-12.32B	-5.64B
Financing Cash Flow	3.58B	0.00	13.67B	11.14B	8.92B	7.63B

Nine Dragons Paper Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 8.2 is above the 20-day moving average (MA) of 7.15, above the 50-day MA of 6.47, and above the 200-day MA of 4.90, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 76.06 is Negative, neither overbought nor oversold. The STOCH value of 81.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2314	69 Neutral	HK$14.69B	10.77	4.88%	3.92%	1.95%	-9.10%
2002	64 Neutral	HK$1.33B	7.10	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	$35.00B	20.17	3.81%	―	6.14%	134.18%
1812	46 Neutral	HK$4.88B	-0.19	―	―	-76.55%	-966.54%

Nine Dragons Paper Holdings Corporate Events

Nine Dragons Paper Announces AGM Results and Board Changes

Nine Dragons Paper Holdings Limited announced the successful passing of all ordinary resolutions at its Annual General Meeting held on December 11, 2025. The meeting also marked the retirement of Mr. Lam Yiu Kin as an independent non-executive director and the appointment of Mr. Sun Po Yuen as the new chairman of the audit committee and member of several other key committees. These changes in the board’s composition are expected to influence the company’s governance and strategic direction, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:2689) stock is a Buy with a HK$8.00 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 Board Composition and Roles

Nine Dragons Paper Holdings Limited has announced the composition of its board of directors and their respective roles, highlighting the leadership structure within the company. This announcement provides clarity on the governance and operational oversight at Nine Dragons, which is crucial for stakeholders to understand the company’s strategic direction and management accountability.

The most recent analyst rating on (HK:2689) stock is a Buy with a HK$8.00 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 Sets Agenda for 2025 Annual General Meeting

Nine Dragons Paper Holdings Limited has announced the agenda for its upcoming Annual General Meeting, scheduled for December 11, 2025, in Hong Kong. Key resolutions include the re-election of several directors, the re-appointment of PricewaterhouseCoopers as auditors, and the authorization for the board to manage directors’ remuneration. Additionally, the company seeks approval to allot and issue additional shares, which could impact its capital structure and shareholder value.

The most recent analyst rating on (HK:2689) stock is a Sell 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 Holdings Appoints New Independent Non-Executive Director

Nine Dragons Paper Holdings has announced the appointment of Mr. Sun Po Yuen as an independent non-executive director, effective October 16, 2025. Mr. Sun brings nearly four decades of experience in accounting and auditing services, having held significant leadership roles at PricewaterhouseCoopers. His extensive knowledge of the Hong Kong capital market and sustainable development of listed companies is expected to enhance the company’s governance and strategic direction.

The most recent analyst rating on (HK:2689) stock is a Sell 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 Holdings Announces Board Composition and Governance Structure

Nine Dragons Paper Holdings has announced the composition of its board of directors and their respective roles and functions. The company has structured its board into various committees, including audit, remuneration, nomination, and corporate governance, to ensure effective oversight and strategic direction. This announcement highlights the company’s commitment to maintaining robust corporate governance practices, which may enhance its operational efficiency and strengthen its position in the industry.

The most recent analyst rating on (HK:2689) stock is a Sell 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 Holdings Strengthens Governance with New Nomination Committee Terms

Nine Dragons Paper Holdings has outlined the terms of reference for its Nomination Committee, which is responsible for reviewing the board’s structure, size, and composition. The committee, composed of at least three members with a majority being independent non-executive directors, plays a crucial role in ensuring the board’s alignment with the company’s corporate strategy. This move is aimed at enhancing governance and ensuring diverse and skilled leadership, which could positively impact the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:2689) stock is a Sell 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.