Risk factor
Low price volatility
Profitability factor
Very low or no dividends
About
Longchen Paper & Packaging Co., Ltd. is a key player in the paper industry, focusing on the production, processing, and distribution of paper raw materials across both Taiwan and Mainland China. The company's diverse operations include manufacturing, processing, and selling a wide range of products such as various types of paper, paperboard, finished paper products, and innovative packaging solutions. They produce cartons, paper boxes, and provide printed packaging. Longchen is also heavily involved in the creation, printing, processing, and trading of corrugated containers, alongside their activities in wastepaper recycling and sales. Furthermore, their offerings extend to specialized prints for packaging and decorative purposes, including color-printed paper cartons, as well as the manufacturing of items like pearl wool and foam. Beyond its core paper business, Longchen actively engages in energy and resource renewal. This involves offering complete turnkey services for the design, implementation, and management of cogeneration and incinerator systems. The company's portfolio also encompasses general investment, extensive wholesale, import, and export activities covering packaging materials, paper products, electronic goods, and hardware. They provide consultancy services, market insights, and investment strategies to various clients, and are also involved in sewage treatment. Originally established in 1978 as Long Chen Paper Co., Ltd., the company officially adopted its current name, Longchen Paper & Packaging Co., Ltd., in June 2019. Its headquarters are located in Changhua, Taiwan.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA, overpriced on P/FC.