Capital Allocation Trends At Nine Dragons Paper (Holdings) (HKG:2689) Aren't Ideal
Jul 07
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Hong Kong (HSI) Paper and Forestry Products Industry Analysis
UpdatedJul 16, 2025
DataAggregated Company Financials
Companies10
- 7D1.3%
- 3M19.2%
- 1Y7.0%
- YTD7.5%
The Paper and Forestry Products industry is up 1.3% in the last week, with Nine Dragons Paper (Holdings) up 1.5%. During this same period, the Reliance Global Holdings underperformed, falling 13%. This takes the industry's 12 month performance to a gain of 7.0%. Earnings are forecast to grow by 25% 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 |
|---|---|---|---|---|---|---|
| Thu, 17 Jul 2025 | HK$27.3b | HK$95.0b | HK$1.7b | 8.1x | 16.4x | 0.3x |
| Sat, 14 Jun 2025 | HK$24.9b | HK$95.0b | HK$2.1b | 12.4x | 12x | 0.3x |
| Mon, 12 May 2025 | HK$23.3b | HK$93.8b | HK$2.1b | 12x | 11.3x | 0.2x |
| Wed, 09 Apr 2025 | HK$22.5b | HK$92.8b | HK$2.0b | 13.9x | 11x | 0.2x |
| Fri, 07 Mar 2025 | HK$26.9b | HK$93.1b | HK$2.3b | 11x | 11.8x | 0.3x |
| Sun, 02 Feb 2025 | HK$25.1b | HK$90.1b | HK$2.3b | 9.8x | 10.9x | 0.3x |
| Tue, 31 Dec 2024 | HK$25.8b | HK$89.4b | HK$2.3b | 10.8x | 11.3x | 0.3x |
| Thu, 28 Nov 2024 | HK$25.5b | HK$90.1b | HK$2.3b | 9.9x | 11x | 0.3x |
| Sat, 26 Oct 2024 | HK$27.4b | HK$91.1b | HK$2.3b | 10.8x | 11.8x | 0.3x |
| Mon, 23 Sep 2024 | HK$24.8b | HK$88.2b | HK$723.2m | 6.1x | 34.3x | 0.3x |
| Wed, 21 Aug 2024 | HK$24.0b | HK$87.5b | HK$784.4m | 5.6x | 30.7x | 0.3x |
| Fri, 19 Jul 2024 | HK$25.4b | HK$86.3b | HK$339.6m | 7.1x | 74.9x | 0.3x |
| Sun, 16 Jun 2024 | HK$27.2b | HK$86.5b | HK$314.2m | 7.1x | 86.4x | 0.3x |
| Tue, 14 May 2024 | HK$31.5b | HK$86.7b | HK$312.5m | 10.1x | 100.7x | 0.4x |
| Thu, 11 Apr 2024 | HK$28.0b | HK$86.3b | HK$309.3m | 5.3x | 90.5x | 0.3x |
| Sat, 09 Mar 2024 | HK$28.1b | HK$87.8b | -HK$15,574,323.82 | 7.5x | -1801.1x | 0.3x |
| Mon, 05 Feb 2024 | HK$23.9b | HK$88.8b | -HK$2,089,852,627.00 | 13x | -11.5x | 0.3x |
| Wed, 03 Jan 2024 | HK$28.5b | HK$89.2b | -HK$2,107,230,569.00 | 14x | -13.5x | 0.3x |
| Fri, 01 Dec 2023 | HK$28.3b | HK$89.1b | -HK$2,106,102,286.00 | 13.3x | -13.4x | 0.3x |
| Sun, 29 Oct 2023 | HK$30.5b | HK$87.9b | -HK$1,978,874,845.00 | 13.8x | -15.4x | 0.3x |
| Tue, 26 Sep 2023 | HK$31.8b | HK$92.8b | -HK$381,324,277.00 | 14.5x | -83.5x | 0.3x |
| Thu, 24 Aug 2023 | HK$30.8b | HK$93.2b | -HK$396,844,408.00 | 14.3x | -77.7x | 0.3x |
| Sat, 22 Jul 2023 | HK$34.2b | HK$97.1b | HK$79.2m | 9.3x | 431.8x | 0.4x |
| Mon, 19 Jun 2023 | HK$35.7b | HK$97.9b | HK$39.2m | 10.1x | 910.3x | 0.4x |
| Wed, 17 May 2023 | HK$37.7b | HK$99.6b | HK$14.0m | 10.7x | 2694.1x | 0.4x |
| Fri, 14 Apr 2023 | HK$43.7b | HK$100.6b | -HK$1,439,525.00 | 12x | -30331.1x | 0.4x |
| Sun, 12 Mar 2023 | HK$41.8b | HK$100.4b | -HK$74,906,516.00 | 15.8x | -558.3x | 0.4x |
| Tue, 07 Feb 2023 | HK$46.8b | HK$109.0b | HK$5.4b | 8.1x | 8.6x | 0.4x |
| Thu, 05 Jan 2023 | HK$52.4b | HK$107.7b | HK$5.4b | 9.7x | 9.8x | 0.5x |
| Sat, 03 Dec 2022 | HK$42.4b | HK$105.6b | HK$5.3b | 8x | 8.1x | 0.4x |
| Mon, 31 Oct 2022 | HK$33.9b | HK$104.4b | HK$5.2b | 6.4x | 6.5x | 0.3x |
| Wed, 28 Sep 2022 | HK$39.1b | HK$106.1b | HK$8.1b | 5.6x | 4.8x | 0.4x |
| Fri, 26 Aug 2022 | HK$43.4b | HK$109.2b | HK$8.4b | 6.4x | 5.1x | 0.4x |
| Sun, 24 Jul 2022 | HK$43.1b | HK$110.4b | HK$9.7b | 4.3x | 4.5x | 0.4x |
Price to Earnings Ratio
4.5x
Current Industry PE
- Investors are pessimistic on the Hong Kong Forestry industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 16.4x which is lower than its 3-year average PE of 90.4x.
- The industry is trading close to its 3-year average PS ratio of 0.33x.
Past Earnings Growth
- The earnings for companies in the Forestry industry have declined 44% per year over the last three years,
- Revenues have also declined 4.9% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Hong Kong Materials industry?
| HK Market | 1.62% | |
| Materials | 0.75% | |
| Paper and Forestry Products | 1.30% | |
| Paper Products | 1.55% | |
| Forestry Products | -6.62% | |
Industry PE
- Investors are most optimistic about the Paper Products industry even though it's trading below its 3-year average PE ratio of 44.8x.
- Analysts expect its future annual earnings growth (24.6%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Paper Products industry, expecting annual earnings growth of 25% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Paper Products industry is expected to see its earnings grow by 25% 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 | |
|---|---|---|---|---|---|
| 2689 Nine Dragons Paper (Holdings) | HK$3.43 | 1.5% +HK$234.6m | 7.5% | PE15.9x | |
| 2314 Lee & Man Paper Manufacturing | HK$2.38 | 2.1% +HK$214.8m | 4.4% | PE7.8x | |
| 94 Greenheart Group | HK$0.056 | 33.3% +HK$26.0m | -12.5% | PS2x | |
| 923 Integrated Waste Solutions Group Holdings | HK$0.014 | 7.7% +HK$4.8m | -44.0% | PS1.5x | |
| 8191 Hong Wei (Asia) Holdings | HK$0.20 | 11.2% +HK$1.1m | -10.0% | PS0.03x |
