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Wuzhou Special Paper Group (605007) Fair Value & Analysis

Basic Materials · CN · Market cap 6.3B CNY

WS Wuzhou Special Paper Group 605007 · SHG
Price¥15.80
Fair Value¥7.44
Upside-52.9%
Quality18/100
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Expensive Growth
Thin margins · 3.1% net margin
Moderate debt · negative free cash flow
1.25% dividend yield
Trails peers (5/13)
Narrow moat 35/100
Evidence: High Range ¥5.58 – ¥9.29 Share as image

Fair value as of: Jul 12, 2026

From 16 valuation models · updated 29 days ago

Share price +2.0% over the past month.

Below-average quality, and screening another 53% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥9.29). The favourable scenario is already priced in.
  • Weak quality (18/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥23.02 ¥9.55 Fair Value ¥7.44 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ¥9.55 – ¥23.02 · fair‑value band ¥5.58 – ¥9.29 · the ¥15.80 price screens above the ¥7.44 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Wuzhou Special Paper Group (605007) currently trades at ¥15.80, while our model-based Fair Value estimate is ¥7.44, implying the stock looks roughly 52.9% overvalued today. The Quality Score stands at 18/100 (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: high).

Over the trailing twelve months, Wuzhou Special Paper Group generated revenue of 9.2B CNY at a net margin of 3.1%. Revenue grew 14.6% year over year. It earns a return on equity of 7.6%. Net debt stands at 6.0B CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥5.58 (bear case) to ¥9.29 (bull case); at ¥15.80, 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 11% below its 52-week high and 45% 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 -53%, 605007 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income ¥6.14 ¥6.45 ¥6.69 76
ROIC Compounder ¥3.41 ¥4.68 ¥5.78 72
Gordon GGM ¥5.06 ¥10.08 ¥15.26 70
All 16 models by family
Earnings-Based
Graham-Dodd ¥3.50 ¥24.40 ¥34.24 54
Lynch FV ¥7.34 ¥10.48 ¥13.62 50
PEG = 1.0 ¥7.34 ¥10.48 ¥13.62 46
EPV ¥3.41 ¥4.68 ¥5.78 59
Dividend Discount
Gordon GGM ¥5.06 ¥10.08 ¥15.26 70
DDM Multi-Stage ¥5.06 ¥8.71 ¥10.64 61
Multiples
P/E Multiple ¥6.56 ¥8.75 ¥10.93 63
P/S Multiple ¥6.56 ¥8.75 ¥10.93 58
P/B Multiple ¥6.56 ¥8.75 ¥10.93 55
EV/EBIT ¥5.87 ¥9.38 ¥12.88 53
EV/EBITDA ¥9.68 ¥14.46 ¥19.23 54
EV/Revenue ¥4.47 ¥8.37 ¥12.28 43
Asset-Based
NCAV (Graham) ¥3.84 ¥5.14 ¥7.67 50
Economic Profit
Residual Income ¥6.14 ¥6.45 ¥6.69 76
ROIC Compounder ¥3.41 ¥4.68 ¥5.78 72
Growth Earnings
Growth-Adj P/E ¥9.17 ¥13.10 ¥17.03 68

Widest divergence: Growth Earnings (¥13.10) versus Economic Profit (¥4.68). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 9.2B CNY
Revenue growth (YoY) +14.6%
Net margin 3.1%
Return on equity 7.6%
Free cash flow −1.9B CNY FY2025
P/E ratio 22.7
More key figures
Operating margin 7.0%
EPS (TTM) ¥0.5800
Dividend yield 1.3%
EPS growth (YoY) +50.0%
Net debt 6.0B CNY FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 18/100

Of which business quality 20 · Market factors (momentum, volatility) 63

Profitability 29
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 3
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 11
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Wuzhou Special Paper Group Co., Ltd. researches and develops, manufactures, and sells paper-based materials in China and internationally. The company provides food packaging materials series, daily consumer materials series, publishing and printing materials series, industrial supporting materials series, and industrial packaging materials series.

Full company description

Wuzhou Special Paper Group Co., Ltd. researches and develops, manufactures, and sells paper-based materials in China and internationally. The company provides food packaging materials series, daily consumer materials series, publishing and printing materials series, industrial supporting materials series, and industrial packaging materials series. It also offers glassine, tracing, digital transfer, and specialty cultural paper products. Wuzhou Special Paper Group Co., Ltd. was formerly known as Quzhou Wuzhou Special Paper Co., Ltd. The company was founded in 2008 and is based in Quzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wuzhou Special Paper Group reported revenue of ¥8.9B in FY2025 versus ¥3.7B in FY2021, a compound +24.6%/yr. Reported net income was ¥245M in FY2025, compounding −11.0%/yr from FY2021.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
8.9B CNY
Latest YoY
+16.1%
Avg. growth/yr (3Y)
+14.2%
Avg. growth/yr (5Y)
+27.5%
Avg. growth/yr (9Y)
+20.7%
Revenue +24.6%/yr
FY21 ¥3.7B
FY22 ¥6.0B
FY23 ¥6.5B
FY24 ¥7.7B
FY25 ¥8.9B
Net income −11.0%/yr
FY21 ¥390M
FY22 ¥205M
FY23 ¥272M
FY24 ¥362M
FY25 ¥245M

605007 screens 53% overvalued. Compare with Klabin S.A →

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Cite: Fair Value Calculator (2026). "Wuzhou Special Paper Group Fair Value". https://www.fairvalue-calculator.com/stock/605007

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.

Quality Score 18 · Bottom 25%
Fair Value upside −53% · Bottom 25%
Return on equity (TTM) 8% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth 15% · Top 25%
Dividend yield (TTM) 1.3% · Below median
Debt / equity 0.69× · Higher than 75% of peers

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

P/E (TTM) 22.7× · Pricier than median
P/B 1.72× · Pricier than 75% of peers
P/S (TTM) 0.68× · Pricier than median
EV/EBITDA 9.2× · Pricier than median

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 · sector 20
FUTURE 73 · sector 7
PAST 30 · sector 12
HEALTH 65 · sector 91
DIVIDEND 25 · sector 41

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.

None of the checked exposures detected

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

Similar stocks

10 more Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.58 R$3.89 -78%
UPM-Kymmene Oyj UPM €23.45 €15.47 -34%
Suzano S.A SUZB3 R$41.70 R$138.01 +231%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 103.00 kr 49.40 -52%
Shandong Sunpaper Co 002078 ¥14.13 ¥17.29 +22%
Holmen AB HOLMB kr 305.40 kr 217.72 -29%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.55 HK$8.73 +16%
Empresas CMPC S.A CMPC 1,078 CLP 1,269 CLP +18%
Xianhe Co 603733 ¥22.05 ¥24.32 +10%
Billerud AB BILL kr 68.70 kr 48.60 -29%

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Frequently asked questions

Is Wuzhou Special Paper Group (605007) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥7.44 versus a price of ¥15.80, about −53% (overvalued).
What is the fair value of 605007?
Our model-based fair value for Wuzhou Special Paper Group is ¥7.44 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥15.80.
What is the quality score of 605007?
Wuzhou Special Paper Group has a Quality Score of 18/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Wuzhou Special Paper Group (605007)?
Wuzhou Special Paper Group reported trailing-twelve-month revenue of about 9.2B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 605007?
The net profit margin of Wuzhou Special Paper Group is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does Wuzhou Special Paper Group pay a dividend?
Wuzhou Special Paper Group currently shows a dividend yield of about 1.25% relative to its recent price (as of Jul 12, 2026).

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.

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