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Nine Dragons Paper Holdings (2689) Fair Value & Analysis

Basic Materials · HK · Market cap HK$33.0B (≈ $4.2B) · ISIN BMG653181005

What is Nine Dragons Paper Holdings really worth?

ND Nine Dragons Paper Holdings 2689 · HK
PriceHK$6.63
Fair ValueHK$7.43
Upside+12.1%
Quality29/100

Below-average quality, trading 11% below our fair value of HK$7.43.

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Strengths

Ranks above peers (9/13)

Risks

!Expensive Growth (revenue 5y +4.3 %/yr)
!Thin margins · 5.5% net margin
!Moderate debt · negative free cash flow
!Narrow moat 34/100
!Evidence only low, so the estimate is less certain
!Weak on past: 29 out of 100
Evidence: Low Range HK$5.82 – HK$8.90

Fair value as of: Aug 20, 2026

From 12 valuation models · updated 16 days ago

Share price −18.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

HK$11.97 HK$2.74 Fair Value HK$7.43 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range HK$2.74 – HK$11.97 · fair‑value band HK$5.82 – HK$8.90 · the HK$6.63 price screens below the HK$7.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Nine Dragons Paper Holdings (2689) currently trades at HK$6.63, while our model-based Fair Value estimate is HK$7.43, implying the stock looks roughly 10.8% undervalued today. The Quality Score stands at 29/100 (below-average quality), in the Basic Materials sector. Bull case: the Economic Profit group reads highest at a median of HK$8.01 per share, and 7 of the 12 models we run sit above the HK$6.63 price. Bear case: the Earnings-Based group reads lowest at HK$3.45, and 5 of the 12 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Nine Dragons Paper Holdings 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 20, 2026

Our scenario range runs from HK$5.82 (bear case) to HK$8.90 (bull case); at HK$6.63, 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 34% below its 52-week high and 99% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 19% fair-value upside, at 12%, 2689 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly HK$0.5600 per share, which is 7.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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 best evidence HK$8.03 HK$8.01 HK$7.36 76
Growth-Adj P/E HK$5.15 HK$7.35 HK$9.56 67
Graham-Dodd HK$3.14 HK$10.59 HK$14.19 64
All 12 models by family
Earnings-Based
Graham-Dodd HK$3.14 HK$10.59 HK$14.19 64
Lynch FV HK$2.42 HK$3.45 HK$4.49 61
PEG = 1.0 HK$2.42 HK$3.45 HK$4.49 57
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 61
EV/EBITDA HK$2.35 HK$6.57 HK$10.78 62
EV/Revenue HK$0.6000 HK$3.87 50
Asset-Based
NCAV (Graham) HK$5.34 HK$7.15 HK$10.68 54
Economic Profit
Residual Income best evidence 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 67

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

P/E ratio 8.7 as of Jul 2, 2026
P/S ratio 0.30 P/E × margin
EPS (TTM) HK$0.5600 price ÷ EPS = P/E 8.7
Net margin 3.4% FY2025
Return on equity 7.3% TTM
Return on assets (EBIT) 3.2% avg 5y
More key figures
Profitability
Operating margin 9.2% TTM
Growth
Revenue (TTM) HK$67.0B TTM
Revenue growth (YoY) +11.2% 3y avg −0.7%
EPS growth (YoY) +319%
Balance sheet & cash flow
Free cash flow −HK$10.9B FY2025
Net debt HK$66.0B FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 29/100

Of which business quality 29 · Market factors (momentum, volatility) 43

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 30
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 51
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 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. revenue 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. revenue 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. revenue 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%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−15.6% (−15.6 + 0.0)
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 %

of which total revenue +7.7 % · buybacks/dilution −1.1 %

EBIT margin −8.7 %
Tax rate +0.6 %
Residual (interest, one-offs) +1.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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

Peer Group

Paper & Paper Products · 117 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 +12% · 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× · Pricier than median
EV/EBITDA 8.4× · Pricier than median
PEG 0.34× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE49 · sector 22
FUTURE56 · sector 1
PAST29 · sector 13
HEALTH41 · sector 92
DIVIDEND0 · sector 47

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

Similar stocks

10 more Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
UPM-Kymmene Oyj UPM €24.31 €14.21 −42%
Suzano S.A SUZ $9.15 $24.16 +164%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAA kr 112.50 kr 45.12 −60%
Shandong Sunpaper Co 002078 ¥13.94 ¥17.29 +24%
Holmen AB HOLMB kr 323.00 kr 217.72 −33%
PT Indah Kiat Pulp & Paper Tbk INKP 8,800 IDR 17,945 IDR +104%
Empresas CMPC S.A CMPC 1,049 CLP 1,281 CLP +22%
The Navigator Company NVG €3.24 €2.65 −18%
Xianhe Co 603733 ¥21.11 ¥21.06 +0%
Semapa - Sociedade de Investimento e Gestão, SGPS, S.A SEM €20.70 €24.73 +19%

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Frequently asked questions

Is Nine Dragons Paper Holdings (2689) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of HK$7.43 versus a price of HK$6.63, about +12% upside (undervalued).
What is the fair value of 2689?
Our model-based fair value for Nine Dragons Paper Holdings is HK$7.43 (as of Aug 20, 2026), built from audited fundamentals. The current price: HK$6.63.
What is the quality score of 2689?
Nine Dragons Paper Holdings 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 (2689)?
Nine Dragons Paper Holdings reported trailing-twelve-month revenue of about HK$67.0B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of 2689?
The net profit margin of Nine Dragons Paper Holdings is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.
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