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Nine Dragons Paper Holdings
(2689)
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Rating:48Neutral
Price Target:
HK$4.50
â–¼(-34.02% Downside)
Action:Reiterated
Date:10/30/26
The score is held back primarily by financial risk factors—persistent negative free cash flow and higher leverage—despite a clear earnings and margin rebound. Technicals further weigh on the score as the stock is in a strong downtrend with negative momentum, though oversold indicators suggest potential for a bounce. Valuation is a partial offset due to the low P/E.
Positive Factors
Revenue and margin recovery
The combination of strong revenue growth and wider margins shows a meaningful earnings recovery from the prior year. If sustained, improved operating profitability can strengthen internal funding capacity and support reinvestment across the company’s packaging-paper franchise.
Negative Factors
Higher leverage
The substantial increase in debt relative to equity makes the capital structure more vulnerable to cyclical downturns and refinancing pressure. Higher leverage can also constrain capital allocation, leaving less flexibility to fund investment or absorb prolonged weakness in paper-market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin recovery
The combination of strong revenue growth and wider margins shows a meaningful earnings recovery from the prior year. If sustained, improved operating profitability can strengthen internal funding capacity and support reinvestment across the company’s packaging-paper franchise.
Read all positive factors
Nine Dragons Paper Holdings (2689) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$21.14B
Dividend Yield2.57%
Average Volume (3M)8.33M
Price to Earnings (P/E)5.0
Beta (1Y)0.94
Revenue Growth22.31%
EPS Growth109.79%
CountryHK
Employees27,453
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.76
Shares Outstanding4,692,220,700
10 Day Avg. Volume6,828,988
30 Day Avg. Volume8,331,791
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.55
Price to Sales (P/S)0.36
P/FCF Ratio-8.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$8.70Price Target Upside27.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.9
Revenue Forecast (FY)HK$76.42B
Nine Dragons Paper Holdings Business Overview & Revenue Model
Company Description
Nine Dragons Paper (Holdings) Limited, together with its affiliated companies, operates primarily within the People's Republic of China, where it manufactures and markets a diverse array of paper and pulp goods. The company's core offerings span p...
Nine Dragons Paper Holdings Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
48
Neutral
Cash Flow
34
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 76.66B | 63.24B | 59.50B | 56.74B | 64.54B |
| Gross Profit | 12.34B | 7.25B | 5.71B | 1.53B | 6.99B |
| EBITDA | 11.27B | 7.66B | 6.18B | 2.17B | 6.74B |
| Net Income | 3.97B | 2.17B | 772.35M | -2.38B | 3.28B |
Balance Sheet | |||||
| Total Assets | 157.44B | 149.04B | 138.37B | 120.65B | 107.08B |
| Cash, Cash Equivalents and Short-Term Investments | 12.09B | 11.27B | 10.68B | 10.44B | 9.78B |
| Total Debt | 90.90B | 77.18B | 69.03B | 56.76B | 44.20B |
| Total Liabilities | 106.49B | 98.43B | 89.89B | 75.51B | 59.58B |
| Stockholders Equity | 50.38B | 50.10B | 48.01B | 44.65B | 47.05B |
Cash Flow | |||||
| Free Cash Flow | -3.09B | -10.94B | -13.61B | -10.77B | -9.59B |
| Operating Cash Flow | 8.12B | 5.07B | -794.20M | 6.92B | 3.03B |
| Investing Cash Flow | -11.02B | -16.04B | -12.66B | -17.42B | -12.32B |
| Financing Cash Flow | 3.37B | 11.61B | 13.67B | 11.14B | 8.92B |
Nine Dragons Paper Holdings Technical Analysis
Negative
6.82
Price Trends
5.90
Negative
6.63
Negative
6.99
Negative
Market Momentum
-0.39
Negative
22.24
Positive
16.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2689, the sentiment is Negative. The current price of 6.82 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 5.90, and below the 200-day MA of 6.99, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 22.24 is Positive, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2689.
Nine Dragons Paper Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$13.49B | 5.41 | 7.88% | 6.52% | 13.69% | 83.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | HK$532.00M | 18.42 | 3.22% | 6.00% | -3.05% | -74.60% | |
49 Neutral | HK$1.86B | 11.43 | 2.76% | 3.05% | 14.95% | -15.17% | |
48 Neutral | HK$21.14B | 5.03 | 7.96% | 2.57% | 22.31% | 109.79% | |
41 Neutral | HK$4.25B | -1.06 | -447.20% | 4.48% | 4.20% | 52.87% | |
40 Underperform | HK$360.72M | -3.68 | -55.61% | 5.45% | 27.73% | -478.69% |
* Basic Materials Sector Average
HK:2689
Nine Dragons Paper Holdings
4.51
-1.07
-19.12%
HK:2314
Lee & Man Paper Manufacturing
3.14
0.54
20.58%
HK:1812
Shandong Chenming Paper Holdings Co., Ltd. Class H
0.46
-0.31
-40.26%
HK:1412
Q P Group Holdings Limited
1.00
-0.61
-38.00%
HK:2002
China Sunshine Paper Holdings Co. Ltd.
1.75
0.05
2.65%
HK:0731
C&D Newin Paper & Pulp Corporation Limited
0.26
0.05
26.87%
Nine Dragons Paper Holdings Corporate Events
Nine Dragons Paper Sets Key December Dates for AGM Voting and Dividend Entitlements
Oct 27, 2026
Nine Dragons Paper (Holdings) Limited, a Hong Kong-listed paper manufacturer incorporated in Bermuda, produces paper and related products for industrial and commercial customers in China and beyond. The company is overseen by a board comprising ex...
Nine Dragons Paper Declares Final Dividend for FY2026
Oct 27, 2026
Nine Dragons Paper (Holdings) Limited has declared a final ordinary cash dividend of RMB 0.1 per share for the financial year ended 30 June 2026, following the approval of its annual results. The dividend underscores the company’s capacity t...
Nine Dragons Paper Sets AGM to Approve Dividend, Board Mandates and Share Issuance Powers
Oct 27, 2026
Nine Dragons Paper (Holdings) Limited has called its Annual General Meeting for 11 December 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 30 June 2026 and vote on a proposed final dividend. T...
Nine Dragons Paper Moves to Modernize Bye-Laws Ahead of New HK Market Regimes
Oct 27, 2026
Nine Dragons Paper (Holdings) Limited plans to overhaul its corporate bye-laws to align with the latest Hong Kong and Bermuda regulatory frameworks, including new regimes for treasury shares, paperless listing, and uncertificated securities. The p...
Nine Dragons Paper Declares Final Dividend for FY2026
Sep 23, 2026
Nine Dragons Paper (Holdings) Limited has declared a final ordinary cash dividend of RMB 0.1 per share for the financial year ended 30 June 2026, with payment scheduled for 19 January 2027. Key details such as the shareholders’ approval date...
Nine Dragons Paper Profit Doubles as Revenue and Volumes Surge in FY2026
Sep 23, 2026
Nine Dragons Paper reported a strong set of annual results for the year ended 30 June 2026, underscoring a broad-based recovery in its core packaging paper business. Sales volume rose 14.0% to 24.5 million tonnes and revenue climbed 18.6% to RMB75...
Nine Dragons Paper Sets September Board Meeting to Approve Annual Results and Dividend
Aug 21, 2026
Nine Dragons Paper (Holdings) Limited has scheduled a board meeting for 23 September 2026 in Hong Kong to review and approve the group’s audited final results for the financial year ended 30 June 2026. The board will also consider the potent...
Nine Dragons Paper Flags Profit Surge and Redeems Perpetual Securities
Aug 20, 2026
Nine Dragons Paper has issued a positive profit alert for the year ended 30 June 2026, indicating group profit is expected to rise to between RMB3.9 billion and RMB4.1 billion, up about 77% to 86% year on year. The surge is driven by higher sales ...
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.