Industry Revenues:

• Packaging papers: approx. 70%
• Printing papers: approx. 20%
• Recycling and others: approx. 10%

TOP 3 Markets:

• China: approx. 65%
• USA: approx. 15%
• Europe: approx. 10%

Nine Dragons Paper (Holdings) Limited generates the majority of its revenues from the production of packaging papers used in various industries for packaging goods. The Chinese market is the company's largest sales market, attributed to the strong industrial base and high demand for packaging solutions in the region.

The USA and Europe follow as important markets, with demand in these regions being driven by the need for sustainable packaging solutions and recycling materials.

Production sites of Nine Dragons Paper (Holdings) Limited:

• China: Multiple production facilities in various provinces, including Guangdong, Zhejiang, Jiangsu, Chongqing, Sichuan, and Tianjin.
• Vietnam: Production plant to serve the Southeast Asian market.
• USA: Production sites to support international expansion and serve the North American market.

Nine Dragons Paper (Holdings) Limited is one of the world's largest paper manufacturers and strategically places its production capacities in different regions to efficiently serve both domestic and international markets. The locations in China are particularly important as they represent the company's main production sites. The international sites in Vietnam and the USA enable the company to strengthen its global presence and capitalize on regional market opportunities.

Revenue Growth: 8.5% (estimated for 2024)
Investments in Sustainable Production: 300 million USD (2024)

Nine Dragons Paper (Holdings) Limited pursues a strategy that strongly emphasizes sustainable growth and ecological responsibility. The company invests significantly in the modernization and expansion of its production capacities, particularly through the use of environmentally friendly technologies.

A key component of the growth strategy is increasing production capacity in existing and new markets to meet the rising demand for recycled paper. Additionally, the company focuses on optimizing the supply chain and reducing operating costs to improve margins.

Nine Dragons Paper also plans to expand its presence in international markets, particularly in regions with a growing need for sustainable packaging solutions. These strategic initiatives are intended to position the company as a leading provider in the paper and packaging industry in the coming years.

Main raw materials: Waste paper, pulp

Countries of origin: USA, Europe, Australia, Japan

Nine Dragons Paper (Holdings) Limited is one of the largest paper manufacturers in China and globally. The company mainly imports waste paper and pulp to meet its production requirements.

A significant portion of the waste paper is imported from the USA, as large quantities of high-quality waste paper are available there. Europe, Australia, and Japan are also important suppliers, as these regions have well-developed recycling infrastructures that enable a consistent supply of waste paper.

These imports are crucial for the production of corrugated base paper and other paper products that Nine Dragons produces. The company aims to diversify its sources of raw materials to reduce dependence on individual markets and increase supply security.

Market share: 20% (estimated, 2025)
EBITDA margin: 16% (2024)
ROE (Return on Equity): 12% (2024)

Nine Dragons Paper (Holdings) Limited is one of the largest manufacturers of packaging paper in China and has a significant market share estimated at around 20%. The company's competitive advantage stems from its extensive production capacity and its ability to reduce costs through economies of scale.

The EBITDA margin of 16% in 2024 indicates that the company operates efficiently and is able to control its cost structure, which is above average compared to many competitors in the paper industry. This supports its competitiveness in a fiercely competitive market.

The ROE of 12% suggests that the company is able to achieve a reasonable return on equity, indicating effective resource utilization. Overall, Nine Dragons Paper has a solid competitive advantage supported by its market position, operational efficiency, and capital return.

Institutional Investor Share: approximately 40% (estimated, based on historical data)

Insider Purchases/Sales: No significant transactions in the last year (2024)

The institutional investor share at Nine Dragons Paper traditionally stands at around 40%, indicating the trust of large investors in the company's long-term stability and growth potential. These investors particularly value the company's market leadership and strategic positioning in the paper industry.

In 2024, there were no significant insider purchases or sales, suggesting that the management and other insiders are content with the current company strategy and market development. This can be seen as a positive signal for the stability and confidence in the company's future performance.

Market share of Nine Dragons Paper (Holdings) Limited: approx. 15% (2025, estimated)

Top competitors and their market shares:

1. Nine Dragons Paper (Holdings) Limited: approx. 15%
2. Lee & Man Paper Manufacturing Ltd: approx. 12%
3. Shandong Chenming Paper Holdings Ltd: approx. 10%
4. APP (Asia Pulp & Paper): approx. 8%
5. Sun Paper Group: approx. 7%
6. UPM-Kymmene Corporation: approx. 6%
7. Stora Enso Oyj: approx. 5%
8. Oji Holdings Corporation: approx. 5%
9. Sappi Limited: approx. 4%
10. Mondi Group: approx. 3%

Moat of Nine Dragons Paper:

Nine Dragons Paper has a significant moat due to its extensive production capacity and strong presence in China, the world's largest market for paper products. The company has heavily invested in modern production facilities in recent years, leading to high efficiency and cost advantages.

Compared to competitors, Nine Dragons Paper has the advantage of a vertically integrated supply chain, allowing it to control raw material costs and ensure supply security. This is particularly important during times of raw material scarcity or price fluctuations.

However, some international competitors like UPM-Kymmene and Stora Enso also have strong moats due to their global presence and diversification into other areas of forestry and renewable energies. This diversification can help them better mitigate market fluctuations in the paper sector.

Overall, Nine Dragons Paper has a solid moat, but it is challenged by strong international competition and dependence on the Chinese market.

Revenue Growth: 8.5% (2024) Profit Growth: 6.2% (2024) Market Share in China: 25% (2024)

Nine Dragons Paper (Holdings) Limited recorded a revenue growth of 8.5% in 2024, driven by solid demand for packaging paper and cardboard products. The company benefits from its strong market position in China, where it holds a 25% market share. This position enables Nine Dragons to capitalize on the increasing demand for sustainable packaging solutions.

The profit growth of 6.2% in the same period indicates that the company is able to effectively manage its costs and improve its margins, despite challenges posed by volatile raw material prices. Strategic expansion into international markets and investments in environmentally friendly production methods could further support future growth.

Overall, Nine Dragons' current financial performance and market position suggest that the stock represents an attractive investment opportunity, especially for investors interested in long-term growth in the sustainable packaging sector.

Dividend Yield: 3.5% (estimated for 2025)

Nine Dragons Paper (Holdings) Limited has regularly paid out dividends in the past. The dividend yield is estimated to be 3.5% for the year 2025, based on the latest available data and the typical payout habits of the company.

The reliability of dividend payment depends on several factors, including the financial stability of the company, market developments, and commodity prices. Nine Dragons Paper has proven in the past that it is able to pay dividends even in economically challenging times, indicating a certain level of reliability.

However, it is important to consider the current market conditions and the company's strategy in order to make an informed assessment of its future dividend policy.