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Lee & Man Paper Manufacturing Limited (HK:2314)
:2314

Lee & Man Paper Manufacturing (2314) AI Stock Analysis

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HK

Lee & Man Paper Manufacturing

(OTC:2314)

Rating:68Neutral
Price Target:
HK$2.50
▲(10.62%Upside)
The stock is moderately attractive, driven by a strong valuation with a low P/E ratio and high dividend yield, which makes it appealing for value investors. Technical analysis supports a cautiously optimistic outlook. However, financial performance concerns, particularly around cash flow and leverage, present notable risks that could impact future stability.

Lee & Man Paper Manufacturing (2314) vs. iShares MSCI Hong Kong ETF (EWH)

Lee & Man Paper Manufacturing Business Overview & Revenue Model

Company DescriptionLee & 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 MoneyLee & 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 exhibits stable revenue growth and profitability improvement. 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
62
Positive
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
70
Positive
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
55
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
26.00B24.94B29.17B32.51B25.87B
Gross Profit
3.11B2.50B2.69B5.70B5.75B
EBIT
1.60B1.02B1.45B3.94B4.43B
EBITDA
2.19B1.86B1.77B4.04B4.67B
Net Income Common Stockholders
1.36B1.05B1.32B3.25B3.65B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.52B1.52B1.80B1.91B1.18B
Total Assets
55.35B54.10B50.33B52.45B46.80B
Total Debt
22.05B19.37B16.41B14.13B11.40B
Net Debt
20.53B17.85B14.61B12.22B10.22B
Total Liabilities
27.34B25.33B21.72B19.05B16.05B
Stockholders Equity
28.00B27.12B28.60B33.39B30.74B
Cash FlowFree Cash Flow
-2.28B-3.55B-1.03B-525.96M582.93M
Operating Cash Flow
425.93M151.37M3.71B2.79B3.92B
Investing Cash Flow
-2.65B-3.67B-4.69B-3.51B-3.32B
Financing Cash Flow
2.23B3.24B1.06B1.43B-2.33B

Lee & Man Paper Manufacturing Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.26
Price Trends
50DMA
2.10
Positive
100DMA
2.17
Positive
200DMA
2.23
Positive
Market Momentum
MACD
0.04
Negative
RSI
70.90
Negative
STOCH
96.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2314, the sentiment is Positive. The current price of 2.26 is above the 20-day moving average (MA) of 2.15, above the 50-day MA of 2.10, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.90 is Negative, neither overbought nor oversold. The STOCH value of 96.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2314.

Lee & Man Paper Manufacturing Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$1.87B6.185.95%-5.61%-34.60%
68
Neutral
$9.71B7.404.75%4.89%4.24%25.30%
64
Neutral
HK$723.52M5.6015.04%8.09%16.53%61.16%
51
Neutral
$15.06B14.972.05%9.33%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
47
Neutral
€4.23B
-39.09%-895.81%
44
Neutral
HK$258.87M11.3213.05%-2.96%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2314
Lee & Man Paper Manufacturing
2.26
0.05
2.26%
HK:0731
C&D Newin Paper & Pulp Corporation Limited
0.19
0.03
18.75%
HK:2002
China Sunshine Paper Holdings Co. Ltd.
1.76
-0.41
-18.89%
HK:1412
Q P Group Holdings Limited
1.36
0.43
46.24%
HK:2689
Nine Dragons Paper Holdings
3.21
-0.25
-7.23%
HK:1812
Shandong Chenming Paper Holdings Co., Ltd. Class H
0.66
-1.18
-64.13%

Lee & Man Paper Manufacturing Corporate Events

Lee & Man Paper Manufacturing Passes All Resolutions at AGM
May 8, 2025

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
Mar 31, 2025

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.

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.