Longchen Paper & Packaging Co. Ltd. (1909) AI Stock Analysis

Longchen Paper & Packaging Co. Ltd.

(TWSE:1909)

Select Model

Rating:37Underperform

Price Target:TWD 8.50▼(-5.35% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is at the minimum of 37, reflecting a deeply distressed company across all evaluated dimensions. The most significant factor is the dire financial performance, characterized by persistent losses, deteriorating cash flow, and a highly leveraged balance sheet. This is compounded by a bearish technical trend with extreme oversold momentum and an unattractive valuation with no dividend support.

Positive Factors

Positive Operating Cash FlowConsistently positive operating cash flow provides an important liquidity buffer while reported earnings remain weak. It indicates the core business has continued converting operations into cash, supporting working-capital needs and helping the company service obligations over the next several quarters.

Negative Factors

Four Consecutive Years of Net LossesFour consecutive annual net losses demonstrate that the business has not yet restored sustainable bottom-line profitability after the stronger 2020–2021 period. Persistent losses can erode equity, constrain reinvestment, and reduce flexibility to absorb further operating setbacks.

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

Financial health is severely distressed. The company faces a sharp revenue decline from its 2021 peak, persistent net losses, and compressed margins. The balance sheet is highly leveraged with a rising debt-to-equity ratio and eroding equity, while operating and free cash flow have plummeted, signaling potential liquidity issues.

Income Statement

18Very Negative

Balance Sheet

22Negative

Cash Flow

15Very Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1909 against its peers
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	37Underperform	TWD 11.92B	39.46	―	―	3.63%	―

* General Sector Average

Performance Comparison

TW:1909 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1909	Longchen Paper & Packaging Co. Ltd.	8.98	-1.12	-11.09%
TW:1903	Shihlin Paper Corporation	44.45	-11.35	-20.34%
TW:1905	Chung Hwa Pulp Corp.	11.45	-1.70	-12.93%
TW:6790	Yuen Foong Yu Consumer Products Co., Ltd.	36.95	1.43	4.03%

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: Nov 09, 2026

Longchen Paper & Packaging Co. Ltd. AI Stock Analysis