Lee & Man Chemical Co. Ltd. (0746) AI Stock Analysis

• Market Cap: HK$4.00B
• Dividend Yield: 6.05%
• Average Volume (3M): 381.40K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.50
• Revenue Growth: -2.46%
• EPS Growth: 20.39%
• Country: HK
• Employees: 1,930
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals
• EPS (TTM): 0.40
• Shares Outstanding: 825,000,000
• 10 Day Avg. Volume: 595,600
• 30 Day Avg. Volume: 381,400
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$4.00
• Price Target Upside: -17.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: HK$5.50 ▲(13.40% Upside)

Lee & Man Chemical Co. Ltd. scores well due to its strong technical indicators and attractive valuation, with a low P/E ratio and high dividend yield. The financial performance is solid, though revenue inconsistencies need attention. The absence of earnings call and corporate events data did not impact the score.

Lee & Man Chemical Co. Ltd. Business Overview & Revenue Model

Company Description

Lee & Man Chemical Co. Ltd. (0746) is a prominent player in the chemical industry, specializing in the production and distribution of chemical products. The company primarily focuses on manufacturing chemical intermediates and additives that are essential in various industrial applications. Its product portfolio includes a range of chemicals used in sectors such as textiles, paper, and personal care, positioning it as a key supplier in both domestic and international markets.

How the Company Makes Money

Lee & Man Chemical Co. Ltd. generates revenue by producing and selling chemical products to industrial clients. The company’s revenue model is centered around the manufacturing and distribution of chemical intermediates and additives, which are crucial components in numerous industrial processes. Key revenue streams include the sale of chemicals to the textile, paper, and personal care industries. The company may also engage in strategic partnerships and collaborations to enhance its market reach and optimize its supply chain. Additionally, factors such as efficient production processes and a solid customer base contribute significantly to its earnings.

Lee & Man Chemical Co. Ltd. Financial Statement Overview

Summary

Lee & Man Chemical Co. Ltd. has a mixed financial performance with strong balance sheet stability and solid operational efficiency, despite inconsistent income and revenue trends. The company's ability to generate cash from operations is a positive indicator, though variability in free cash flow needs addressing for sustained growth.

Income Statement

Lee & Man Chemical Co. Ltd. has shown a mixed performance in recent years. The gross profit margin has remained relatively strong, indicating effective cost management. However, there has been a decline in both revenue and net income in recent periods, with a notable revenue drop from 2022 to 2023. Despite this, the company maintains a healthy EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The company's balance sheet reflects strong equity levels and a conservative debt-to-equity ratio, suggesting financial stability and lower leverage risk. The equity ratio is robust, indicating a solid capital structure with significant asset backing. Overall, Lee & Man Chemical Co. Ltd. appears financially sound in terms of its balance sheet metrics.

Cash Flow

The cash flow statement highlights a strong operating cash flow, which is a positive indicator of the company's ability to generate cash from its core operations. However, free cash flow has shown variability, which could impact investment flexibility. The operating cash flow to net income ratio is favorable, but attention to free cash flow growth is needed to sustain long-term financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.95B	4.05B	5.87B	5.19B	3.10B
Gross Profit	1.16B	1.06B	2.12B	2.34B	1.13B
EBITDA	693.50M	597.02M	1.51B	1.72B	743.82M
Net Income	482.28M	400.67M	1.16B	1.29B	502.63M
Balance Sheet
Total Assets	7.20B	7.03B	7.08B	7.62B	6.78B
Cash, Cash Equivalents and Short-Term Investments	290.66M	263.67M	421.70M	324.88M	422.68M
Total Debt	653.06M	678.91M	746.46M	1.04B	1.54B
Total Liabilities	1.26B	1.23B	1.44B	2.04B	2.34B
Stockholders Equity	5.94B	5.80B	5.63B	5.57B	4.44B
Cash Flow
Free Cash Flow	282.02M	142.21M	955.86M	762.12M	348.55M
Operating Cash Flow	1.06B	756.45M	1.57B	1.43B	827.06M
Investing Cash Flow	-826.47M	-613.69M	-610.62M	-676.51M	-476.20M
Financing Cash Flow	-265.43M	-298.37M	-840.28M	-870.29M	-195.50M

Lee & Man Chemical Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0746, the sentiment is Positive. The current price of 4.85 is above the 20-day moving average (MA) of 4.38, above the 50-day MA of 4.00, and above the 200-day MA of 3.73, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 73.17 is Negative, neither overbought nor oversold. The STOCH value of 74.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0746.

Lee & Man Chemical Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	78 Outperform	HK$4.00B	7.03	9.36%	6.05%	-2.46%	20.39%
0189	68 Neutral	HK$18.94B	22.73	6.03%	0.87%	-4.04%	44.12%
Sector *	58 Neutral	HK$16.63B	4.29	-4.93%	4.55%	-5.74%	-81.55%
2198	58 Neutral	HK$2.23B	3.74	11.49%	―	47.32%	492.76%
1702	57 Neutral	HK$900.37M	9.82	4.75%	2.41%	-13.75%	-56.14%
0609	54 Neutral	HK$1.17B	16.02	2.75%	3.76%	-11.89%	-69.45%
1907	54 Neutral	HK$10.65B	478.00	0.15%	0.93%	1.42%	-97.94%

Lee & Man Chemical Co. Ltd. Corporate Events

Lee & Man Chemical Reports 36% Profit Increase Amid Cost Reductions

Lee & Man Chemical Company Limited reported a significant 36% increase in profit to HK$327 million for the first half of 2025, driven by reduced energy costs and lower raw material prices. The company’s gross profit margin improved by 7.4 percentage points to 36.3%, and it proposed an interim dividend of HK19.5 cents per share, up from HK14 cents in the previous year, indicating strong financial performance and positive implications for stakeholders.

Lee & Man Chemical Announces Interim Dividend for 2025

Lee & Man Chemical Co. Ltd. has announced an interim cash dividend of HKD 0.195 per share for the six months ended 30 June 2025, with the payment date set for 09 September 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, potentially enhancing its market position and stakeholder confidence.

Lee & Man Chemical Schedules Board Meeting for Interim Results

Lee & Man Chemical Co. Ltd. has announced a board meeting scheduled for 7 August 2025 to approve the interim results for the first half of the year and to consider the recommendation for an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Lee & Man Chemical Co. Ltd. Reports Successful AGM with All Resolutions Passed

Lee & Man Chemical Co. Ltd. announced the successful passing of all ordinary resolutions during their Annual General Meeting held on May 8, 2025. The resolutions included the adoption of financial statements, declaration of dividends, re-election of directors, and authorization of director remuneration. The meeting saw full participation from shareholders, with no abstentions, and all resolutions were passed with overwhelming support, indicating strong shareholder confidence in the company’s governance and strategic direction.