Longchen Paper & Packaging Co. Ltd. AI Stock Analysis
Longchen Paper & Packaging Co. Ltd. (1909) AI Stock Analysis
Longchen Paper & Packaging Co. Ltd.
(TWSE:1909)
The score is driven primarily by weak fundamentals: four straight years of net losses, halved gross margins, declining revenue and high leverage (about 2.0x debt-to-equity) against an eroding equity base. Cash flow remains positive but is thinning quickly, covering only a small fraction of outstanding debt. Technicals reinforce the caution, with the price below all major moving averages and negative MACD, though extremely oversold RSI and Stochastic readings leave room for a short-term bounce. Valuation adds little support, with a demanding ~40x P/E and no dividend yield, while the low beta provides only modest downside cushion. A cyclical recovery in pricing and margins would be needed to materially improve this profile.
Longchen Paper & Packaging Co. Ltd. (1909) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 11.87B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.84M
- Price to Earnings (P/E)
- 39.5
- Beta (1Y)
- 0.46
- Revenue Growth
- 3.63%
- EPS Growth
- ―
- Country
- TW
- Employees
- 1,042
- Sector
- General
- Sector Strength
- 55
- Industry
- Paper, Lumber & Forest Products
Longchen Paper & Packaging Co. Ltd. Business Overview & Revenue Model
Company Description
Longchen Paper & Packaging Co., Ltd. is a key player in the paper industry, focusing on the production, processing, and distribution of paper raw materials across both Taiwan and Mainland China. The company's diverse operations include manufacturing,...
Longchen Paper & Packaging Co. Ltd. Financial Statement Overview
Summary
Financials are fragile across all three statements. Revenue has fallen to NT$44.7bn, roughly 21% below the 2021 peak, gross margin has halved to 8.9%, operating profit is essentially breakeven-to-negative, and the company has posted four consecutive annual net losses (latest -NT$517m). Leverage is elevated, with NT$41.6bn of debt against a shrinking NT$20.3bn equity base (about 2.0x debt-to-equity) and negative return on equity of -2.5%. The relative bright spot is cash flow: operations remain cash-positive (NT$1.23bn) with a second straight year of positive free cash flow, but both declined sharply and operating cash now covers only about 6% of total debt, leaving minimal room to deleverage.
Income Statement
24NegativeBalance Sheet
27NegativeCash Flow
36Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.54B | 44.71B | 47.80B | 46.71B | 52.97B | 56.61B |
| Gross Profit | 4.53B | 3.99B | 4.66B | 4.55B | 4.39B | 9.30B |
| EBITDA | 2.19B | 2.12B | 3.41B | 2.81B | 3.48B | 6.94B |
| Net Income | 296.53M | -516.65M | -373.55M | -1.02B | -923.15M | 2.35B |
Balance Sheet | ||||||
| Total Assets | 69.62B | 68.75B | 68.53B | 70.13B | 72.59B | 78.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.67B | 1.61B | 991.17M | 1.04B | 1.95B | 1.62B |
| Total Debt | 33.76B | 41.56B | 40.91B | 41.65B | 42.32B | 40.13B |
| Total Liabilities | 48.79B | 48.43B | 47.09B | 48.00B | 48.49B | 50.71B |
| Stockholders Equity | 20.79B | 20.29B | 21.40B | 22.08B | 24.05B | 27.29B |
Cash Flow | ||||||
| Free Cash Flow | 1.00B | 201.22M | 988.66M | -93.03M | -815.54M | 629.93M |
| Operating Cash Flow | 1.80B | 1.23B | 2.56B | 4.38B | 2.89B | 3.64B |
| Investing Cash Flow | -1.12B | -1.39B | -925.27M | -4.50B | -3.55B | -3.47B |
| Financing Cash Flow | 2.16B | 477.86M | -977.00M | -1.05B | 1.18B | -154.28M |
Longchen Paper & Packaging Co. Ltd. Peers Comparison
Overall Rating
TW:679068.2Neutral
TW:190342Neutral
TW:190540Underperform- TW:190933Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:6790 | 68Neutral | TWD 9.84B | 11.95 | ― | 7.17% | -3.83% | 17.72% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:1903 | 42Neutral | TWD 11.73B | 32.79 | ― | ― | -1.63% | ― |
| TW:1905 | 40Underperform | TWD 12.55B | -22.75 | ― | ― | -6.94% | 23.37% |
| TW:1909 | 33Underperform | TWD 11.92B | 39.46 | ― | ― | 3.63% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:1909 | Longchen Paper & Packaging Co. Ltd. | 9.04 | -0.79 | -8.04% | |
| TW:1903 | Shihlin Paper Corporation | 44.60 | -11.20 | -20.07% | |
| TW:1905 | Chung Hwa Pulp Corp. | 11.60 | -0.80 | -6.45% | |
| TW:6790 | Yuen Foong Yu Consumer Products Co., Ltd. | 36.95 | 1.29 | 3.62% |
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: Nov 09, 2026