Lee & Man Paper Manufacturing (2314) AI Stock Analysis

• Market Cap: HK$9.15B
• Dividend Yield: 5.62%
• Average Volume (3M): 3.91M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.84
• Revenue Growth: 4.24%
• EPS Growth: 25.30%
• Country: HK
• Employees: 10,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.30
• Shares Outstanding: 4,295,000,000
• 10 Day Avg. Volume: 2,794,409
• 30 Day Avg. Volume: 3,913,279
• PEG Ratio: -0.90
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The stock's moderate score is due to stable financial performance with improved profitability but offset by rising debt and cash flow challenges. Technical analysis suggests bearish momentum, indicating caution. However, the low P/E ratio and high dividend yield make it appealing for value and income-oriented investors.

Lee & Man Paper Manufacturing Business Overview & Revenue Model

Company Description

Lee & Man Paper Manufacturing Limited, listed under the stock code 2314 on the Hong Kong Stock Exchange, is one of the leading paper and packaging producers in Asia. The company specializes in the production of containerboard and tissue paper, serving a wide range of industries including food, electronics, and consumer goods. With a strong focus on sustainability and innovation, Lee & Man Paper Manufacturing operates several advanced production facilities across China and Southeast Asia, contributing to its competitive advantage in the global market.

How the Company Makes Money

Lee & Man Paper Manufacturing generates revenue primarily through the production and sale of paper products such as containerboard, which is used for packaging solutions, and tissue paper products for consumer and industrial use. The company benefits from economies of scale due to its large production capacity and advanced manufacturing technologies. Key revenue streams include sales to domestic and international markets, with significant contributions from partnerships with large-scale distributors and retailers. Additionally, the company has invested in waste paper recycling, which not only supports its sustainability initiatives but also helps in reducing raw material costs, thus positively impacting its profitability.

Lee & Man Paper Manufacturing Financial Statement Overview

Summary

Lee & Man Paper Manufacturing shows stable revenue growth and improved profitability. However, rising debt levels and cash flow challenges highlight potential risks. The company's ability to manage leverage and enhance cash flow generation will be crucial for future financial health.

Income Statement

The company shows moderate revenue growth with a 4.25% increase from 2023 to 2024. Gross profit margin improved to 11.97% in 2024 from 10.03% in 2023, indicating better cost management. However, the net profit margin of 5.22% is moderate, and the absence of EBIT in 2024 indicates potential operational challenges.

Balance Sheet

The debt-to-equity ratio increased to 0.79 in 2024, signaling higher leverage, which may pose risks. However, the equity ratio remains strong at 50.59%, and ROE improved to 4.85% in 2024, reflecting decent returns on shareholder equity amidst increased liabilities.

Cash Flow

The operating cash flow to net income ratio is low at 0.31, suggesting cash generation issues. Free cash flow remains negative, although it improved compared to 2023. The free cash flow to net income ratio indicates challenges in converting income into free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.00B	24.94B	29.17B	32.51B	25.87B
	Gross Profit
3.11B	2.50B	2.69B	5.70B	5.75B
	EBIT
1.60B	1.02B	1.45B	3.94B	4.43B
	EBITDA
2.19B	1.86B	1.77B	4.04B	4.67B
	Net Income Common Stockholders
1.36B	1.05B	1.32B	3.25B	3.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.52B	1.52B	1.80B	1.91B	1.18B
	Total Assets
55.35B	54.10B	50.33B	52.45B	46.80B
	Total Debt
22.05B	19.37B	16.41B	14.13B	11.40B
	Net Debt
20.53B	17.85B	14.61B	12.22B	10.22B
	Total Liabilities
27.34B	25.33B	21.72B	19.05B	16.05B
	Stockholders Equity
28.00B	27.12B	28.60B	33.39B	30.74B
Cash Flow		Free Cash Flow
-2.28B	-3.55B	-1.03B	-525.96M	582.93M
	Operating Cash Flow
425.93M	151.37M	3.71B	2.79B	3.92B
	Investing Cash Flow
-2.65B	-3.67B	-4.69B	-3.51B	-3.32B
	Financing Cash Flow
2.23B	3.24B	1.06B	1.43B	-2.33B

Lee & Man Paper Manufacturing Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2314, the sentiment is Neutral. The current price of 2.11 is above the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.21, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 75.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2314.

Lee & Man Paper Manufacturing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1898	77 Outperform	$133.86B	5.50	12.03%	5.39%	-4.04%	-12.32%
1848	64 Neutral	HK$2.96B	11.51	6.02%	6.78%	3.58%	810.26%
2314	60 Neutral	HK$9.15B	6.97	4.75%	5.62%	4.24%	25.30%
3302	51 Neutral	HK$115.05M	―	-6.89%	―	7.26%	-146.91%
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%
2689	48 Neutral	HK$14.26B	14.18	2.05%	―	9.33%	―
2312	41 Neutral	HK$31.91M	―	-2.95%	―	50.91%	81.77%

Lee & Man Paper Manufacturing Corporate Events

Lee & Man Paper Manufacturing Passes All Resolutions at AGM

Lee & Man Paper Manufacturing Limited announced the successful passage of all ordinary resolutions at its Annual General Meeting held on May 8, 2025. The resolutions included the adoption of financial statements, declaration of a final dividend, and re-election and appointment of directors. The meeting saw high shareholder participation, with all resolutions receiving overwhelming support, indicating strong investor confidence in the company’s governance and strategic direction.

Lee & Man Paper Manufacturing Announces 2025 AGM Agenda

Lee & Man Paper Manufacturing Limited has announced its Annual General Meeting (AGM) scheduled for May 8, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of financial statements, declaration of dividends, re-election of directors, and approval of director remuneration. The AGM will also consider the re-appointment of auditors and authorize the board to manage share allotments. These decisions are crucial for the company’s governance and financial planning, impacting its operational strategies and shareholder relations.

Lee & Man Paper Announces Final Dividend for 2024

Lee & Man Paper Manufacturing Limited announced a final ordinary dividend of HKD 0.045 per share for the financial year ending December 31, 2024. This announcement highlights the company’s financial health and commitment to returning value to shareholders, with the payment date set for June 3, 2025, following shareholder approval in May.

Lee & Man Paper Reports Increased Revenue and Profit for 2024

Lee & Man Paper Manufacturing Limited announced its audited consolidated results for the year ended December 31, 2024, reporting a revenue of HK$25,995 million and a net profit of HK$1,358 million, showing an increase from the previous year. The company maintained a stable payout ratio of about 35% and proposed a final dividend of HK4.5 cents per share, indicating a solid financial performance and a positive outlook for stakeholders.

Lee & Man Paper Manufacturing Schedules Board Meeting for Final Results Approval

Lee & Man Paper Manufacturing Limited has announced a board meeting scheduled for March 6, 2025, to approve the final results for the year ended December 31, 2024, and consider the payment of a final dividend. This meeting is significant as it addresses key financial outcomes and potential shareholder returns, indicating the company’s ongoing commitment to transparency and stakeholder engagement.