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Lee & Man Chemical Co. Ltd. (HK:0746)
:0746
Hong Kong Market

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

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HK

Lee & Man Chemical Co. Ltd.

(0746)

Rating:73Outperform
Price Target:
HK$4.00
▲(1.78%Upside)
Lee & Man Chemical Co. Ltd. holds a strong position with its solid valuation and financial stability, supported by a low P/E ratio and high dividend yield. However, technical indicators suggest caution due to overbought conditions. Addressing revenue challenges could enhance future growth prospects.

Lee & Man Chemical Co. Ltd. (0746) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionLee & Man Chemical Co. Ltd. (0746) is a Hong Kong-based company primarily engaged in the manufacturing and sale of chemical products. The company operates in the chemical industry, focusing on the production of various chemical goods that serve multiple sectors, including paper manufacturing, textiles, and other industrial applications. Its core products include sodium hydroxide, hydrogen peroxide, and other related chemical products that are essential for a range of industrial processes.
How the Company Makes MoneyLee & Man Chemical Co. Ltd. generates revenue primarily through the sale of its chemical products to a diverse range of industries. The company's key revenue streams include the production and distribution of sodium hydroxide and hydrogen peroxide, which are widely used in paper manufacturing and other industries. Additionally, the company benefits from strategic partnerships and long-term contracts with industrial clients, ensuring a stable demand for its products. Factors such as efficient production processes, cost management, and market expansion strategies also contribute significantly to the company's earnings.

Lee & Man Chemical Co. Ltd. Financial Statement Overview

Summary
Lee & Man Chemical Co. Ltd. presents a balanced financial profile with strong operational efficiency and a solid balance sheet. Despite declining revenue and net income, it maintains healthy margins. Cash flow variability is a concern, but the overall financials suggest stability and potential for growth if revenue challenges are addressed.
Income Statement
72
Positive
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
80
Positive
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
68
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.95B4.05B5.87B5.19B3.10B
Gross Profit1.16B1.06B2.12B2.34B1.13B
EBITDA693.50M597.02M1.51B1.72B743.82M
Net Income482.28M400.67M1.16B1.29B502.63M
Balance Sheet
Total Assets7.20B7.03B7.08B7.62B6.78B
Cash, Cash Equivalents and Short-Term Investments290.66M263.67M421.70M324.88M422.68M
Total Debt653.06M678.91M746.46M1.04B1.54B
Total Liabilities1.26B1.23B1.44B2.04B2.34B
Stockholders Equity5.94B5.80B5.63B5.57B4.44B
Cash Flow
Free Cash Flow282.02M142.21M955.86M762.12M348.55M
Operating Cash Flow1.06B756.45M1.57B1.43B827.06M
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 Price3.93
Price Trends
50DMA
3.64
Positive
100DMA
3.69
Positive
200DMA
3.64
Positive
Market Momentum
MACD
0.08
Negative
RSI
68.47
Neutral
STOCH
73.12
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 3.93 is above the 20-day moving average (MA) of 3.79, above the 50-day MA of 3.64, and above the 200-day MA of 3.64, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 68.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.12 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$3.26B6.768.22%7.59%-2.46%20.39%
69
Neutral
HK$1.06B11.514.75%2.12%-13.75%-56.14%
68
Neutral
HK$16.73B20.066.03%0.99%-4.04%44.12%
58
Neutral
HK$16.33B4.50-5.52%4.88%-3.57%-61.41%
56
Neutral
HK$2.02B3.4911.49%47.32%492.76%
54
Neutral
€11.54B518.000.15%1.31%1.42%-97.94%
54
Neutral
HK$1.03B14.102.75%3.42%-11.89%-69.45%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0746
Lee & Man Chemical Co. Ltd.
3.95
0.47
13.51%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.77
0.04
2.31%
HK:0189
Dongyue Group Limited
9.88
1.91
23.96%
HK:1702
Dongguang Chemical Ltd.
1.70
-0.16
-8.60%
HK:1907
China Risun Group Ltd.
2.59
-0.33
-11.39%
HK:0609
Tiande Chemical Holdings Limited
1.20
0.12
11.11%

Lee & Man Chemical Co. Ltd. Corporate Events

Lee & Man Chemical Co. Ltd. Reports Successful AGM with All Resolutions Passed
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025