Nine Dragons Paper (Holdings) (HKG:2689) Might Be Having Difficulty Using Its Capital Effectively
Nov 25
Hong Kong (HSI) Paper and Forestry Products Industry Analysis
UpdatedNov 29, 2022
DataAggregated Company Financials
Companies9
- 7D1.6%
- 3M-4.6%
- 1Y-40.0%
- YTD-37.9%
In the last week, the Paper and Forestry Products industry is up 1.2%, with Lee & Man Paper Manufacturing up 3.0%. In the same time, Reliance Global Holdings was down 7.1%. In contrast, the industry has lost 41% in the last 12 months. Earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Hong Kong Paper and Forestry Products Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 29 Nov 2022 | HK$39.8b | HK$104.8b | HK$5.2b | 7.6x | 7.6x | 0.4x |
| Thu, 27 Oct 2022 | HK$33.1b | HK$104.2b | HK$5.2b | 6.3x | 6.3x | 0.3x |
| Sat, 24 Sep 2022 | HK$38.2b | HK$106.8b | HK$8.2b | 5.7x | 4.7x | 0.4x |
| Mon, 22 Aug 2022 | HK$46.4b | HK$109.6b | HK$8.5b | 6.7x | 5.5x | 0.4x |
| Wed, 20 Jul 2022 | HK$42.1b | HK$110.4b | HK$9.7b | 4.2x | 4.3x | 0.4x |
| Fri, 17 Jun 2022 | HK$45.3b | HK$111.1b | HK$9.7b | 4.5x | 4.7x | 0.4x |
| Sun, 15 May 2022 | HK$47.9b | HK$110.3b | HK$9.7b | 5.1x | 5x | 0.4x |
| Tue, 12 Apr 2022 | HK$51.6b | HK$115.2b | HK$10.1b | 5.4x | 5.1x | 0.4x |
| Thu, 10 Mar 2022 | HK$51.8b | HK$115.7b | HK$9.9b | 7.7x | 5.2x | 0.4x |
| Sat, 05 Feb 2022 | HK$62.0b | HK$108.0b | HK$12.3b | 8.3x | 5x | 0.6x |
| Mon, 03 Jan 2022 | HK$64.0b | HK$108.1b | HK$12.4b | 9.2x | 5.2x | 0.6x |
| Wed, 01 Dec 2021 | HK$65.6b | HK$107.8b | HK$12.3b | 5.2x | 5.3x | 0.6x |
| Fri, 29 Oct 2021 | HK$72.0b | HK$107.5b | HK$12.3b | 5.8x | 5.9x | 0.7x |
| Sun, 26 Sep 2021 | HK$84.9b | HK$96.9b | HK$10.7b | 7.5x | 7.9x | 0.9x |
| Tue, 24 Aug 2021 | HK$80.0b | HK$96.1b | HK$10.2b | 6.9x | 7.9x | 0.8x |
| Wed, 30 Jun 2021 | HK$74.9b | HK$96.1b | HK$10.2b | 8.7x | 7.4x | 0.8x |
| Sat, 03 Apr 2021 | HK$87.1b | HK$93.9b | HK$9.8b | 7.6x | 8.9x | 0.9x |
| Tue, 05 Jan 2021 | HK$81.6b | HK$91.8b | HK$9.5b | 7.4x | 8.6x | 0.9x |
| Fri, 09 Oct 2020 | HK$72.8b | HK$88.0b | HK$8.1b | 6.9x | 9x | 0.8x |
| Thu, 02 Jul 2020 | HK$54.6b | HK$84.3b | HK$6.7b | 6.5x | 8.1x | 0.6x |
| Sun, 05 Apr 2020 | HK$57.3b | HK$86.0b | HK$6.8b | 7.5x | 8.5x | 0.7x |
| Wed, 08 Jan 2020 | HK$67.8b | HK$89.4b | HK$7.0b | 8x | 9.7x | 0.8x |
Price to Earnings Ratio
9x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Forestry industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 7.5x.
- The industry is trading close to its 3-year average PS ratio of 0.68x.
Past Earnings Growth
- The earnings for companies in the Forestry industry have declined 10% per year over the last three years.
- Meanwhile revenues for these companies have grown 5.3% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Hong Kong Materials industry?
| HK Market | -0.40% | |
| Materials | 2.33% | |
| Paper and Forestry Products | 1.60% | |
| Forestry Products | 23.41% | |
| Paper Products | 1.29% | |
Industry PE
- Investors are most optimistic about the Paper Products industry, which is trading close to its 3-year average PE ratio of 6.8x.
- Analysts are expecting annual earnings growth of 16.1%, which is higher than its past year's earnings decline of 52.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Paper Products industry, expecting annual earnings growth of 16% over the next 5 years.
- This is better than its past earnings decline of 53% per year.
- In contrast, the Paper Products industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 2314 Lee & Man Paper Manufacturing | HK$2.80 | 3.7% +HK$431.0m | -48.1% | PE6.1x | |
| 2689 Nine Dragons Paper (Holdings) | HK$5.85 | 1.6% +HK$422.3m | -34.0% | PE7.7x | |
| 8003 Great World Company Holdings | HK$0.48 | 18.5% +HK$24.8m | -35.1% | PS0.8x | |
| 1580 Da Sen Holdings Group | HK$0.061 | 10.9% +HK$9.7m | -46.5% | PS0.7x | |
| 94 Greenheart Group | HK$0.09 | 4.7% +HK$7.4m | -30.2% | PS0.6x |