Ninestar forecasts recovery amid challenges
January 27, 2025
Chinese printing giant shows resilience after Lexmark sale, despite headwinds.
Ninestar Corporation has forecasted a return to profitability for 2024, predicting net earnings of between ¥6.5 billion and ¥9.5 billion ($914 million / €850 million to $1.34 billion / €1.24 billion). Adjusted for long-term asset impairments, net profit rises significantly to ¥14 billion–¥16 billion ($1.97 billion / €1.83 billion to $2.25 billion / €2.09 billion), showcasing strong fundamentals despite persistent challenges.
The company is currently selling Lexmark, its printer subsidiary, to Xerox for $1.5 billion (€1.44 billion), including debt. Lexmark’s reported EBITDA of $283 million (€261 million) positions the sale at a valuation of 5.3 times EBITDA, reflecting a pragmatic exit strategy amidst a challenging market environment.
In its Pantum printer business, Ninestar achieved ¥46 billion ($6.47 billion / €6.02 billion) in revenue, an 18% year-on-year increase, with net profit reaching ¥6 billion ($844 million / €786 million). A3 printer sales soared 132%, reflecting a focus on higher-margin segments. However, increased R&D (+76%) and sales expenses (+56%) suggest margin pressures.
Despite its divestiture, Lexmark recorded $2.225 billion (€2.06 billion) in revenue, a 7% growth supported by a 30% rise in printer sales. This underscores Ninestar’s past investments in growing the subsidiary’s global footprint.
The company’s integrated circuit division posted flat revenues of ¥14 billion ($1.97 billion / €1.83 billion), though profits surged 146%, driven by chip innovation in sectors like automotive electronics and humanoid robotics.
Generic consumables, however, saw mixed results: ¥62 billion ($8.72 billion / €8.12 billion) in sales marked a 12% increase, but profits fell 38% due to rising costs in recycled consumables and A3 copier supplies.
While uncertainties remain, including the potential impact of asset impairments, Ninestar’s forecast reflects cautious optimism as it adapts to shifting market dynamics.
Editor: We wrote this article using a combination of AI and human expertise. AI tools translated and summarised the original performance forecast, ensuring accuracy and efficiency. The resulting draft was then carefully reviewed and edited by a human writer on our News Team to refine the narrative, provide context, and maintain a journalistic tone in line with The Recycler’s style standards.
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