Lee & Man Paper Manufacturing (2314) AI Stock Analysis

• Market Cap: $9.79B
• Dividend Yield: 4.12%
• Average Volume (3M): 3.53M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.83
• Revenue Growth: 4.24%
• EPS Growth: 25.30%
• Country: HK
• Employees: 10,000
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.30
• Shares Outstanding: 4,295,000,000
• 10 Day Avg. Volume: 4,275,537
• 30 Day Avg. Volume: 3,528,401
• 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: 68 Neutral
• Price Target: HK$2.50 ▲(9.65%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 Business Overview & Revenue Model

Company Description

Lee & Man Paper Manufacturing Limited, an investment holding company, manufactures and trades in packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers white lined chipboards and environment friendly white linerboard coated products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls for wiping and cleaning of hands, faces, food, etc.; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. The company was founded in 1994 and is based in Kwun Tong, Hong Kong.

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
	EBIT
4.36B	1.60B	1.02B	1.45B	3.94B	4.43B
	EBITDA
4.67B	2.19B	1.86B	1.77B	4.04B	4.67B
	Net Income Common Stockholders
3.52B	1.36B	1.05B	1.32B	3.25B	3.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.18B	1.52B	1.52B	1.80B	1.91B	1.18B
	Total Assets
46.80B	55.35B	54.10B	50.33B	52.45B	46.80B
	Total Debt
11.40B	22.05B	19.37B	16.41B	14.13B	11.40B
	Net Debt
10.22B	20.53B	17.85B	14.61B	12.22B	10.22B
	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: 2.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2.28 is above the 20-day moving average (MA) of 2.17, 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 72.94 is Negative, neither overbought nor oversold. The STOCH value of 88.97 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2314	68 Neutral	$9.79B	7.46	4.75%	4.12%	4.24%	25.30%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
NDGPF		$1.92B	14.25	2.05%	―	―	―
SCD1		€466.79M	―		―	―	―
2002	69 Neutral	HK$1.89B	6.21	5.95%	―	-5.61%	-34.60%
1412	64 Neutral	HK$728.84M	5.64	15.04%	16.06%	16.53%	61.16%
0731	44 Neutral	HK$274.43M	11.15	13.05%	―	-2.96%	―

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.