Nine Dragons Paper Holdings Ltd. (2689) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nine Dragons Paper Holdings Ltd.

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Why is Nine Dragons Paper Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -9.25% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With ROE of 2.11%, it has a Very Expensive valuation with a 0.54 Price to Book Value

Over the past year, while the stock has generated a return of 83.28%, its profits have risen by 233.4% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nine Dragons Paper Holdings Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nine Dragons Paper Holdings Ltd.

82.74%

14.73

40.04%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.03%

EBIT Growth (5y)

-9.25%

EBIT to Interest (avg)

3.98

Debt to EBITDA (avg)

9.49

Net Debt to Equity (avg)

1.47

Sales to Capital Employed (avg)

0.61

Tax Ratio

25.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.30%

ROE (avg)

5.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.54

EV to EBIT

32.72

EV to EBITDA

14.22

EV to Capital Employed

0.82

EV to Sales

1.42

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

2.49%

ROE (Latest)

2.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Nine Dragons Paper Holdings Ltd.

Operating Profit

Highest at HKD 3,658.28 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 1,025.1 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 509.39 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (HKD MM)

Net Sales

Highest at HKD 37,148.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Pre-Tax Profit

At HKD 1,025.1 MM has Grown at 59.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 509.39 MM has Grown at 61.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 12,744.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.94%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -209.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

At HKD 2,041.33 MM has Grown at 9.03%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Nine Dragons Paper Holdings Ltd.

Interest

At HKD 906.8 MM has Grown at 22.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debt-Equity Ratio

Highest at 151.2 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.32%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio