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

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China Sunshine Paper Holdings Co. Ltd.

(HKEX:2002)

Select Model

Rating:49Neutral

Price Target:HKD 1.50▼(-9.64% Downside)

Action:reiterated

Date:09/24/26

The score is held down primarily by weak financial performance—shrinking margins, negative recent revenue trend, and a sharp drop in operating cash flow with deeply negative free cash flow—alongside rising leverage and lower returns. Technicals are supportive with an uptrend, but overbought momentum signals add near-term risk. Valuation (low P/E and moderate dividend yield) provides some offset but is not enough to outweigh the fundamental deterioration.

Positive Factors

Resilient gross and EBITDA marginsMid-teen gross margins and an 8.7% EBITDA margin indicate that the core paper operation still retains operating profitability before capital investment. This provides some cushion against earnings pressure and preserves a base for recovery if pricing or volumes improve.

Negative Factors

Material profitability deteriorationThe sustained decline in net and EBIT margins shows that the company is generating substantially less profit from its revenue and asset base than in earlier years. Persistent margin compression reduces earnings resilience, limits reinvestment capacity, and makes recovery more dependent on improved pricing or volumes.

China Sunshine Paper Holdings Co. Ltd. (2002) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 1.79B
Dividend Yield: 3.03%
Average Volume (3M): 282.41K
Price to Earnings (P/E): 10.9
Beta (1Y): 0.24
Revenue Growth: 14.95%
EPS Growth: -15.17%
Country: Hong Kong
Employees: 4,500
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

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

Company Description

China Sunshine Paper Holdings Company Limited is an international enterprise primarily involved in the manufacturing and distribution of diverse paper products. Its extensive portfolio encompasses white top linerboards, both standard and coated varia...

China Sunshine Paper Holdings Co. Ltd. Financial Statement Overview

Summary

Overall fundamentals are pressured: profitability has materially weakened versus 2020–2021 (net and EBIT margins down to low single digits), revenue has been negative in recent years, and 2025 cash generation deteriorated sharply with deeply negative free cash flow. Leverage has risen (debt-to-equity ~1.34x) while ROE has compressed (~3.2%), reducing financial flexibility despite mid-teen gross margins and prior stronger cash flow in 2023.

Income Statement

34Negative

Balance Sheet

48Neutral

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.52B	7.79B	8.05B	8.36B	9.54B	7.98B
Gross Profit	1.07B	1.09B	1.20B	1.31B	1.16B	1.53B
EBITDA	600.77M	734.35M	777.49M	1.19B	918.92M	1.24B
Net Income	134.42M	159.90M	279.87M	393.31M	205.73M	556.62M
Balance Sheet
Total Assets	14.08B	13.54B	12.11B	12.16B	12.10B	11.03B
Cash, Cash Equivalents and Short-Term Investments	3.05B	2.92B	1.15B	1.59B	868.93M	840.09M
Total Debt	6.59B	6.50B	5.11B	5.18B	5.56B	4.71B
Total Liabilities	8.70B	8.22B	6.81B	7.19B	7.68B	6.94B
Stockholders Equity	4.90B	4.84B	4.85B	4.57B	4.09B	3.78B
Cash Flow
Free Cash Flow	-680.81M	-582.25M	86.51M	870.30M	-111.79M	-50.98M
Operating Cash Flow	77.70M	113.71M	680.54M	1.41B	546.40M	1.07B
Investing Cash Flow	-1.19B	-791.12M	-884.63M	-118.01M	-1.13B	-1.39B
Financing Cash Flow	1.31B	853.55M	-228.69M	-559.81M	607.55M	536.07M

China Sunshine Paper Holdings Co. Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1.66

Price Trends

50DMA1.48Positive

100DMA1.20Positive

200DMA1.18Positive

Market Momentum

MACD0.05Positive

RSI55.85Neutral

STOCH62.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2002, the sentiment is Positive. The current price of 1.66 is below the 20-day moving average (MA) of 1.68, above the 50-day MA of 1.48, and above the 200-day MA of 1.18, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 62.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2002.

China Sunshine Paper Holdings Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:2002 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:8481	64Neutral	HKD 115.47M	3.02	13.82%	―	-5.13%	-4.83%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:2314	61Neutral	HKD 13.74B	5.59	7.88%	6.32%	13.69%	83.56%
HK:2002	49Neutral	HKD 1.76B	10.90	2.76%	3.03%	14.95%	-15.17%
HK:2689	49Neutral	HKD 21.49B	5.12	7.96%	―	22.31%	109.79%
HK:1812	41Neutral	HKD 4.16B	-1.79	-814.38%	―	4.20%	52.87%
HK:0731	38Underperform	HKD 333.85M	-3.30	-55.61%	―	27.73%	-478.69%

* Basic Materials Sector Average

Performance Comparison

HK:2002 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2002	China Sunshine Paper Holdings Co. Ltd.	1.66	-0.05	-2.92%
HK:2314	Lee & Man Paper Manufacturing	3.24	0.38	13.29%
HK:2689	Nine Dragons Paper Holdings Ltd.	4.57	-1.68	-26.88%
HK:1812	Shandong Chenming Paper Holdings Co., Ltd. Class H	0.42	-0.43	-50.59%
HK:0731	C&D Newin Paper & Pulp Corporation Limited	0.23	0.01	6.02%
HK:8481	Shenglong Splendecor International Limited	0.28	-0.31	-53.39%

China Sunshine Paper Holdings Co. Ltd. Corporate Events

China Sunshine Paper Secures RMB170 Million via Sale-and-Leaseback of Key Mill Assets

Sep 28, 2026

China Sunshine Paper’s wholly owned unit Numat Paper has entered into a finance lease arrangement with FEHX involving core production equipment for coated white top linerboard at its Shandong plant. Under the deal, Numat Paper will sell these assets...

China Sunshine Paper Unit Strikes RMB120m Finance Lease for Linerboard Equipment

Aug 31, 2026

China Sunshine Paper’s wholly owned unit Numat Paper has entered into a finance lease arrangement with Ping An International Financial Leasing involving key equipment used for coated white top linerboard production in Shandong. The leased assets incl...

China Sunshine Paper lifts revenue but profit drops on higher costs

Aug 28, 2026

China Sunshine Paper Holdings reported interim results for the six months ended 30 June 2026, showing revenue of RMB4.30 billion, up 20.2% from a year earlier, while gross profit slipped 3.5% to RMB519.6 million. Profit attributable to shareholders f...

China Sunshine Paper Schedules Board Meeting to Review Interim Results and Dividend

Aug 17, 2026

China Sunshine Paper Holdings Company Limited has called a board meeting for 28 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The directors will also consider whether to declare an interim divi...

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: Sep 24, 2026

China Sunshine Paper Holdings Co. Ltd. AI Stock Analysis