Lee & Man Paper Manufacturing (2314) AI Stock Analysis

• Market Cap: HK$10.01B
• Dividend Yield: 3.86%
• Average Volume (3M): 4.53M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.83
• Revenue Growth: 4.24%
• EPS Growth: 25.30%
• Country: HK
• Employees: 10,000
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.13
• Shares Outstanding: 4,295,000,000
• 10 Day Avg. Volume: 5,026,794
• 30 Day Avg. Volume: 4,532,258
• PEG Ratio: -0.24
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.59
• 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

• Rating: 71 Outperform
• Price Target: HK$2.50 ▲(7.30%Upside)

The stock is supported by strong valuation metrics, including a low P/E ratio and high dividend yield, enhancing its attractiveness. Technical indicators point to positive momentum, although financial performance reveals challenges with debt and cash flow, necessitating cautious optimism.

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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.87B	26.00B	24.94B	29.17B	32.51B	25.87B
Gross Profit	5.75B	3.11B	2.50B	2.69B	5.70B	5.75B
EBITDA	4.67B	2.19B	1.86B	1.77B	4.04B	4.67B
Net Income	3.52B	1.36B	1.05B	1.32B	3.25B	3.65B
Balance Sheet
Total Assets	46.80B	55.35B	54.10B	50.33B	52.45B	46.80B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.52B	1.52B	1.80B	1.91B	1.18B
Total Debt	11.40B	22.05B	19.37B	16.41B	14.13B	11.40B
Total Liabilities	16.05B	27.34B	25.33B	21.72B	19.05B	16.05B
Stockholders Equity	30.74B	28.00B	27.12B	28.60B	33.39B	30.74B
Cash Flow
Free Cash Flow	483.89M	-2.28B	-3.55B	-1.03B	-525.96M	582.93M
Operating Cash Flow	3.82B	425.93M	151.37M	3.71B	2.79B	3.92B
Investing Cash Flow	-3.36B	-2.65B	-3.67B	-4.69B	-3.51B	-3.32B
Financing Cash Flow	-2.20B	2.23B	3.24B	1.06B	1.43B	-2.33B

Lee & Man Paper Manufacturing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.33 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.16, and above the 200-day MA of 2.24, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.46 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2314	71 Outperform	HK$10.01B	7.62	4.75%	3.86%	4.24%	25.30%
2002	64 Neutral	HK$1.85B	6.07	5.95%	2.30%	-5.61%	-34.60%
1412	64 Neutral	HK$792.68M	6.14	15.04%	14.77%	16.53%	61.16%
Sector *	58 Neutral	HK$17.25B	4.63	-6.43%	5.11%	-3.18%	-62.89%
2689	56 Neutral	$16.14B	16.04	2.05%	―	9.33%	―
0731	49 Neutral	HK$267.36M	10.86	13.05%	―	-2.96%	―
1812	47 Neutral	HK$4.23B	―		―	-39.09%	-895.81%

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.