Cheng Loong Corporation (1904) Fair Value & Analysis

Basic Materials · TW · Market cap 23.7B TWD

Below-average quality, and screening another 29% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (20.33 TWD). The favourable scenario is already priced in.
• Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range 15.50 TWD – 42.42 TWD · fair‑value band 12.20 TWD – 20.33 TWD · the 22.80 TWD price screens above the 16.26 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Cheng Loong Corporation (1904) currently trades at 22.80 TWD, while our model-based Fair Value estimate is 16.26 TWD, implying the stock looks roughly 28.7% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Cheng Loong Corporation generated revenue of 43.1B TWD at a net margin of 3.2%. Revenue grew 1.3% year over year. It earns a return on equity of 4.4%. Net debt stands at 24.8B TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 12.20 TWD (bear case) to 20.33 TWD (bull case); at 22.80 TWD, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at -29%, 1904 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Asset-Based (17.72 TWD) versus Earnings-Based (2.17 TWD). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Cheng Loong Corporation manufactures and sells paper products in Taiwan, Mainland China, and Southeast Asia. The company offers paperboard products, including containerboard, linerboard, coated duplex board, corrugating medium, white top linerboard, and coreboard; and corrugated containers, such as corrugated boards, display and waterproof container, and …

Full company description

Cheng Loong Corporation manufactures and sells paper products in Taiwan, Mainland China, and Southeast Asia. The company offers paperboard products, including containerboard, linerboard, coated duplex board, corrugating medium, white top linerboard, and coreboard; and corrugated containers, such as corrugated boards, display and waterproof container, and paper pallets. It provides household paper products, such as tissue papers, facial tissues, paper towels, paper hand towels, and diapers, as well as personal and household cleaning products. In addition, the company offers office paper products, which include credit card receipts, 2-copy and 3-copy receipts, computer forms, paper voucher, paper invoice, medication bags, labels/tags, and flexible packaging, etc. Further, it provides green paper art products for children's educational toys, pet toys, and cultural and creative products, as well as builds residential and commercial premises for rent and sale. Additionally, the company manufactures and installs electronic components, glass products, and optical and precision instruments; manufactures and sells corrugated cardboard, kraft linerboard, and display boxes; and paper boxes, trays, containers, core papers, foams, anti-static bubble bags, plastic buffer packaging materials. It involves in packaging decoration printing; trading of color printing accessories and base paper; manufacturing packaging for electronic products, tissue, carton, wrapping paper, pallets for export, separator, lithographic, flexographic, and other paper products; and water and sewage treatment, as well as provides maintenance and technical repairment services. Cheng Loong Corporation was incorporated in 1959 and is headquartered in New Taipei City, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Cheng Loong Corporation reported revenue of 43.0B TWD in FY2025 versus 45.0B TWD in FY2021, a compound −1.1%/yr. Reported net income was 823M TWD in FY2025, compounding −32.5%/yr from FY2021.

1904 screens 29% overvalued. Compare with Klabin S.A →

Peer Group

Paper & Paper Products · 113 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.