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Nine Dragons Paper (Holdings) Limited (2689) Fair Value & Analysis

Basic Materials · HK · Market cap HK$33.0B

ND Nine Dragons Paper (Holdings) Limited 2689 · HK
PriceHK$8.08
Fair ValueHK$7.43
Upside-8.0%
Quality29/100
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Expensive Growth
Thin margins · 5.5% net margin
Moderate debt · negative free cash flow
Ranks above peers (10/13)
Narrow moat 34/100
Evidence: Medium Range HK$5.82 – HK$8.89 Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated yesterday

Share price +10.3% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from HK$5.82 (bear) to HK$8.89 (bull), base HK$7.43. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 29/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

HK$11.97 HK$2.74 Fair Value HK$7.43 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$2.74 – HK$11.97 · fair‑value band HK$5.82 – HK$8.89 · the HK$8.08 price screens above the HK$7.43 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Nine Dragons Paper (Holdings) Limited (2689) currently trades at HK$8.08, while our model-based Fair Value estimate is HK$7.43, implying the stock looks roughly 8.0% fairly valued today. The Quality Score stands at 29/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Nine Dragons Paper (Holdings) Limited generated revenue of HK$67.0B at a net margin of 5.5%. Revenue grew 11.2% year over year. It earns a return on equity of 7.3%. Net debt stands at HK$66.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$5.82 (bear case) to HK$8.89 (bull case); at HK$8.08, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 142% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 0% fair-value upside, at -8%, 2689 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$8.03 HK$8.01 HK$7.36 76
Growth-Adj P/E HK$5.15 HK$7.35 HK$9.56 68
P/E Multiple HK$5.89 HK$7.85 HK$9.82 63
All 12 models by family
Earnings-Based
Graham-Dodd HK$3.14 HK$10.59 HK$14.19 54
Lynch FV HK$2.42 HK$3.45 HK$4.49 50
PEG = 1.0 HK$2.42 HK$3.45 HK$4.49 46
Multiples
P/E Multiple HK$5.89 HK$7.85 HK$9.82 63
P/S Multiple HK$5.89 HK$7.85 HK$9.82 58
P/B Multiple HK$5.89 HK$7.85 HK$9.82 55
EV/EBIT HK$1.44 HK$4.38 53
EV/EBITDA HK$2.35 HK$6.57 HK$10.78 54
EV/Revenue HK$0.6000 HK$3.87 43
Asset-Based
NCAV (Graham) HK$5.34 HK$7.15 HK$10.68 50
Economic Profit
Residual Income HK$8.03 HK$8.01 HK$7.36 76
Growth Earnings
Growth-Adj P/E HK$5.15 HK$7.35 HK$9.56 68

Widest divergence: Economic Profit (HK$8.01) versus Earnings-Based (HK$3.45). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$67.0B
Revenue growth (YoY) +11.2%
Net margin 5.5%
Return on equity 7.3%
Free cash flow −HK$10.9B FY2025
P/E ratio 8.7 as of Jul 2, 2026
More key figures
Operating margin 9.2%
EPS (TTM) HK$0.5600
EPS growth (YoY) +319%
Net debt HK$66.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 29/100

Of which business quality 29 · Market factors (momentum, volatility) 64

Profitability 22
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 32
Calm price path (market factor)
Momentum 73
Price trend over the last 3–12 months (market factor)
52W Momentum 86
Distance to the 52-week high (market factor)
Net Issuance 6
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, manufactures and sells packaging paper, printing and writing paper, and specialty paper products and pulp in the People's Republic of China.

Full company description

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, manufactures and sells packaging paper, printing and writing paper, and specialty paper products and pulp in the People's Republic of China. The company offers kraft, test, white top, and coated linerboard, as well as bleached folding boxboard; corrugating medium; uncoated wood free and office paper; coated duplex board; and gypsum board cover paper. It also provides container board, kraft paper, and packaging products; corrugated sheet, cardboard, and carton box; kraft paper bag; color printing; and laminated paper products. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nine Dragons Paper (Holdings) Limited reported revenue of HK$63.2B in FY2025 versus HK$61.6B in FY2021, a compound +0.7%/yr. Reported net income was HK$2.2B in FY2025, compounding −25.7%/yr from FY2021.

Growth Quality 29/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$63.2B
Latest YoY
+6.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.3%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.7%
Revenue +0.7%/yr
FY21 HK$61.6B
FY22 HK$64.5B
FY23 HK$56.7B
FY24 HK$59.5B
FY25 HK$63.2B
Net income −25.7%/yr
FY21 HK$7.1B
FY22 HK$3.3B
FY23 −HK$2.4B
FY24 HK$772M
FY25 HK$2.2B
Character of growth · EPS growth decomposed (2014-2025) −0.8 % p.a.
Revenue per share +6.5 pp

of which total revenue +7.7 pp · buybacks/dilution −1.2 pp

EBIT margin −8.7 pp
Tax rate +0.6 pp
Residual (interest, one-offs) +0.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Nine Dragons Paper (Holdings) Limited Fair Value". https://www.fairvalue-calculator.com/stock/2689

Peer Group

Paper & Paper Products · 115 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 29 · Bottom 25%
Fair Value upside −7% · Above median
Return on equity (TTM) 7% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 9% · Top 25%
Revenue growth 11% · Top 25%
Debt / equity 1.19× · Higher than 75% of peers

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/E (TTM) 8.7× · Cheaper than 75% of peers
P/B 0.66× · Cheaper than median
P/S (TTM) 0.49× · Cheaper than median
EV/EBITDA 8.4× · Pricier than median
PEG 0.34× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 24 · sector 21
FUTURE 56 · sector 7
PAST 29 · sector 12
HEALTH 41 · sector 91
DIVIDEND 0 · sector 44

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.55 R$3.80 -78%
UPM-Kymmene Oyj UPM €23.18 €14.21 -39%
Suzano S.A SUZ $8.02 $23.77 +196%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 109.40 kr 49.40 -55%
Shandong Sunpaper Co 002078 ¥13.94 ¥17.29 +24%
Holmen AB HOLMB kr 323.20 kr 217.72 -33%
Empresas CMPC S.A CMPC 1,000 CLP 1,253 CLP +25%
Xianhe Co 603733 ¥21.09 ¥21.06 -0%
Billerud AB BILL kr 77.60 kr 48.60 -37%
PT Pabrik Kertas Tjiwi Kimia Tbk TKIM 7,575 IDR 8,397 IDR +11%

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Frequently asked questions

Is Nine Dragons Paper (Holdings) Limited (2689) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$7.43 versus a price of HK$8.08, about −8% (fairly valued).
What is the fair value of 2689?
Our model-based fair value for Nine Dragons Paper (Holdings) Limited is HK$7.43 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$8.08.
What is the quality score of 2689?
Nine Dragons Paper (Holdings) Limited has a Quality Score of 29/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Nine Dragons Paper (Holdings) Limited (2689)?
Nine Dragons Paper (Holdings) Limited reported trailing-twelve-month revenue of about HK$67.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2689?
The net profit margin of Nine Dragons Paper (Holdings) Limited is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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