Assessing Nine Dragons Paper (SEHK:2689) Valuation After Strong Earnings Guidance And Sharp Share Price Rebound

Simply Wall St.02-07

AdvertisementWhy Nine Dragons Paper (Holdings) (SEHK:2689) is in focus right now Nine Dragons Paper (Holdings) (SEHK:2689) has moved back onto investors’ radar after issuing earnings guidance for the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2609851550?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/2062000-choice1-main-header/1585186924314","is_english":true,"pubTime":"2026-02-07 01:14","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2609851550","market":"hk","top_or_hot":-1,"title":"Assessing Nine Dragons Paper (SEHK:2689) Valuation After Strong Earnings Guidance And Sharp Share Price Rebound","media":"Simply Wall St.","content":"<div>\n<p>AdvertisementWhy Nine Dragons Paper (Holdings) (SEHK:2689) is in focus right now Nine Dragons Paper (Holdings) (SEHK:2689) has moved back onto investors’ radar after issuing earnings guidance for the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/materials/hkg-2689/nine-dragons-paper-holdings-shares/news/assessing-nine-dragons-paper-sehk2689-valuation-after-strong\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing Nine Dragons Paper (SEHK:2689) Valuation After Strong Earnings Guidance And Sharp Share Price Rebound</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Nine Dragons Paper (SEHK:2689) Valuation After Strong Earnings Guidance And Sharp Share Price Rebound\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-07 01:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/materials/hkg-2689/nine-dragons-paper-holdings-shares/news/assessing-nine-dragons-paper-sehk2689-valuation-after-strong><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhy Nine Dragons Paper (Holdings) (SEHK:2689) is in focus right now Nine Dragons Paper (Holdings) (SEHK:2689) has moved back onto investors’ radar after issuing earnings guidance for the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/materials/hkg-2689/nine-dragons-paper-holdings-shares/news/assessing-nine-dragons-paper-sehk2689-valuation-after-strong\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DCF","symbol_name":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","start_time":0,"source_url":"https://simplywall.st/stocks/hk/materials/hkg-2689/nine-dragons-paper-holdings-shares/news/assessing-nine-dragons-paper-sehk2689-valuation-after-strong","article_id":"2609851550","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2062000-choice1-main-header/1585186924314"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/materials/hkg-2689/nine-dragons-paper-holdings-shares/news/assessing-nine-dragons-paper-sehk2689-valuation-after-strong","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609851550","pubTimestamp":1770398043,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Why Nine Dragons Paper (Holdings) (SEHK:2689) is in focus right now\nNine Dragons Paper (Holdings) (SEHK:2689) has moved back onto investors’ radar after issuing earnings guidance for the six months to 31 December 2025, flagging a sharp jump in expected profitability.\nSee our latest analysis for Nine Dragons Paper (Holdings).\nThe upbeat earnings guidance appears to have coincided with strong momentum in the shares, with a 30 day share price return of 28.09% and a 90 day gain of 58.08%. The 1...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","02689":"玖龙纸业","BK1514":"人民币升值概念","BK1551":"纸业股","SG9999014674.SGD":"Nikko AM All China Equity A SGD","BK1223":"纸制品"},"translate_title":"在强劲的盈利指引和股价大幅反弹后评估玖龙纸业（SEHK：2689）的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"02689":0.9},"content_text":"AdvertisementWhy Nine Dragons Paper (Holdings) (SEHK:2689) is in focus right now Nine Dragons Paper (Holdings) (SEHK:2689) has moved back onto investors’ radar after issuing earnings guidance for the six months to 31 December 2025, flagging a sharp jump in expected profitability. See our latest analysis for Nine Dragons Paper (Holdings). The upbeat earnings guidance appears to have coincided with strong momentum in the shares, with a 30 day share price return of 28.09% and a 90 day gain of 58.08%. The 1 year total shareholder return of 178.27% signals that sentiment has shifted materially in favour of the stock, despite a weaker 5 year total shareholder return of 33.05%. If this kind of sharp rebound has caught your attention, it could be a good moment to broaden your search and check out our screener of 105 top founder-led companies for more ideas. With profits for the period expected to be several times higher than a year ago and the share price already sharply higher, the key question now is whether Nine Dragons Paper still trades at a discount or if the market is already pricing in future growth. Price-to-Earnings of 20.5x: Is it justified? On a P/E of 20.5x, Nine Dragons Paper is priced above both its peer group and the wider Asian forestry industry, even after the recent share price strength. The P/E ratio tells you how much investors are paying today for each unit of current earnings, which matters a lot for a cyclical, capital intensive paper producer. A higher multiple can suggest the market is willing to pay up for earnings quality, improving profitability or expectations that recent momentum in results can be sustained. For Nine Dragons Paper, the current P/E of 20.5x sits above the peer average of 11.8x and also above the Asian forestry industry average of 19.7x, so the market is clearly assigning a premium. It is also only slightly ahead of the estimated fair P/E of 20x, which points to limited room for the multiple to expand further if earnings track those fair value assumptions. Explore the SWS fair ratio for Nine Dragons Paper (Holdings) Result: Price-to-Earnings of 20.5x (OVERVALUED) However, the sharp share price run, alongside an intrinsic premium and a 33.05% weaker 5 year total return, suggests expectations could reset quickly if sentiment cools. Find out about the key risks to this Nine Dragons Paper (Holdings) narrative. Another view: DCF paints a very different picture While the 20.5x P/E suggests Nine Dragons Paper is only slightly above its fair ratio of 20x, our DCF model points in the opposite direction. At HK$8.71, the shares are trading well above an estimated future cash flow value of HK$2.18, which implies a heavy premium rather than a margin of safety. For anyone weighing these two signals, the real question is which you trust more right now: current earnings or long term cash flow assumptions. Look into how the SWS DCF model arrives at its fair value. 2689 Discounted Cash Flow as at Feb 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nine Dragons Paper (Holdings) for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 238 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own Nine Dragons Paper (Holdings) Narrative If you look at the numbers and come to a different conclusion, or simply prefer to test your own view against the data, you can put together a personalised thesis in just a few minutes with Do it your way. A great starting point for your Nine Dragons Paper (Holdings) research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If Nine Dragons Paper has sharpened your focus, do not stop here. Your next strong idea could come from a very different corner of the market.  Spot potential value opportunities early by scanning our list of 238 high quality undervalued stocks that may be priced below what their fundamentals suggest. Prioritise resilience by checking companies in our 332 resilient stocks with low risk scores where business quality and risk scores work together for steadier compounding. Hunt for lesser known opportunities with solid foundations using our screener containing 543 high quality undiscovered gems before they appear on everyone else's radar.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Nine Dragons Paper (Holdings) might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2609851550","isCrawlerRequest":true}