Growth Dragons

Growth Dragons

Share this post

Growth Dragons
Growth Dragons
Say Yes to Biodegradable Plastic Bags—And This Stock Could Boom
Investment Ideas

Say Yes to Biodegradable Plastic Bags—And This Stock Could Boom

Alvin Chow's avatar
Alvin Chow
Jul 09, 2025
∙ Paid
3

Share this post

Growth Dragons
Growth Dragons
Say Yes to Biodegradable Plastic Bags—And This Stock Could Boom
3
Share

China Treasures New Materials (CTNM) (HKEX: 2439) is a Hong Kong-listed company based in Changchun, Jilin, in Northeastern China. It develops, manufactures, and sells both biodegradable and non-biodegradable plastic products. It’s not a flashy business, but it plays a critical role in the sustainability landscape and benefits from regulatory tailwinds.

CTNM is one of China’s leading producers of disposable biodegradable plastic products, particularly plastic bags, rolls, and wraps, which make up over 90% of its revenue and profit. It manufactures masterbatches—compounds that can be tailored to customers' requirements—making it an integral part of the supply chain.

The company’s core products are designed to degrade in landfill environments through the action of bacteria and microorganisms.

A smaller segment of its business involves making non-biodegradable plastic parts for automobiles.

The industry remains fragmented. In 2021, the top five biodegradable plastic producers in China held just 13.4% market share combined. CTNM ranked fourth with a 2.6% share.

Despite this, it has delivered solid growth: revenue and profit both more than doubled in four years, with a 4-year CAGR of 25% for revenue and 23% for profit. In the most recent year, revenue rose 11% while profit surged 33%, or 19% excluding one-off gains—thanks to stable gross margins and tight cost control.

How Cheap Is CTNM Stock?

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Dr Wealth
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share