Nine Dragons Paper 2689.HK (HKSE) HK$9.51 pre-earnings Feb 25: margin outlook
The 2689.HK stock is trading at HK$9.51 intraday on 24 Feb 2026, down 3.26% as investors position ahead of Nine Dragons Paper’s earnings on 25 Feb 2026. Market focus centres on margin guidance after a strong price recovery year-to-date. Volume sits at 9,593,925 shares versus a 50-day average of 13,783,409, signalling active repositioning ahead of results.
2689.HK stock: Earnings timing and what to watch
Nine Dragons Paper (Holdings) Limited (2689.HK) reports results on 25 Feb 2026. Expect management commentary on packaging demand, recycled-pulp costs and export volumes. Analysts will watch consolidated gross margins and any guidance for pulp price pass-through.
One key datum: consensus is thin, so the stock may react to management tone. Trading on the HKSE has shown a day high HK$9.74 and day low HK$9.10, indicating intraday support near HK$9.10.
Earnings drivers: volumes, pricing and input costs
Primary earnings drivers are sales volumes, corrugating medium pricing and recycled pulp costs. Nine Dragons’ revenue-per-share TTM is 11.67, with net income per share TTM 0.40, so small margin swings change EPS materially.
If pulp costs fall, gross margin can rise quickly. Conversely, higher energy or logistics costs would compress margins. Watch the company’s commentary on order backlog and export mix.
Valuation, key metrics and Meyka AI grade
At HK$9.51, Nine Dragons trades at PE 22.12 and PB 0.91. Book value per share is HK$9.34, and EV/EBITDA is 14.59. Leverage is material: debt-to-equity stands at 1.54, and interest coverage is 2.66.
Meyka AI rates 2689.HK with a score out of 100: 60.57 (B, HOLD). This grade factors in S&P 500 and sector comparisons, financial growth, key metrics and analyst consensus. These grades are not guarantees and we are not financial advisors.
Technicals and intraday positioning
Technicals show short-term strength but stretched momentum. RSI is 73.67 (overbought) and MACD histogram is positive. The 50-day average is HK$7.38 and the 200-day average is HK$5.41, signalling a strong medium-term uptrend.
Intraday support sits near HK$9.10; resistance is near the year high of HK$9.97. Volume at 9.59M today is below the 50-day average, suggesting fewer participants at current levels.
Risks, catalysts and sector context
Key risks are higher recycled pulp costs, slower domestic packaging demand, and rising interest costs given the group’s leverage. Sector peers in Basic Materials trade at an average PE around 27.97, showing room for relative re-rating if margins improve.
Catalysts include stronger-than-expected margin expansion, higher export volumes, or a clearer capital allocation plan. Negative catalysts would be weaker pricing or a cautious outlook on pulp costs.
Price forecasts and analyst scenarios
Meyka AI’s forecast model projects monthly HK$9.99, yearly HK$10.06, and three-year HK$17.29. Versus the current HK$9.51, that implies a 5.05% monthly upside, 5.79% yearly upside, and 81.78% three-year upside. Forecasts are model-based projections and not guarantees.
Scenario price targets: base case HK$10.06 (model), conservative HK$9.00 if margins compress, and bull HK$14.00 if margins and volume expand materially. These targets reflect PE and PB scenarios and the company’s capital structure.
Final Thoughts
Intraday, the 2689.HK stock sits at HK$9.51 on 24 Feb 2026, trading down 3.26% as the market waits for results on 25 Feb 2026. Near-term moves will hinge on margin commentary and pulp-cost outlook. Valuation metrics show a PE of 22.12 and PB near 0.91, with leverage a notable risk given debt-to-equity 1.54. Meyka AI’s forecast model projects yearly HK$10.06, implying ~5.79% upside from current levels, and three-year HK$17.29, implying ~81.78% upside. These figures frame a risk-reward pair: modest near-term upside versus larger multi-year potential if margins normalise and growth continues. Use earnings clarity and management guidance to re-assess positioning, and consult the Meyka AI stock page for live updates and model revisions: Meyka stock page. Forecasts are model projections and not guarantees.
FAQs
When does Nine Dragons (2689.HK stock) report earnings?
Nine Dragons reports on 25 Feb 2026. Expect commentary on recycled pulp costs, packaging demand and margin guidance that will move the 2689.HK stock intraday.
What are the main valuation metrics for 2689.HK stock?
At HK$9.51, key metrics are PE 22.12, PB 0.91, book value per share HK$9.34, and EV/EBITDA 14.59. Leverage is significant with debt-to-equity 1.54.
What does Meyka AI forecast for 2689.HK stock?
Meyka AI’s forecast model projects monthly HK$9.99, yearly HK$10.06, and three-year HK$17.29. These are model-based projections and not guarantees.
What are the main risks and catalysts for 2689.HK stock?
Risks include higher pulp and energy costs and higher interest expense due to leverage. Catalysts include improved margins, stronger export demand and clearer capital allocation.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.