NOT FOR DISTRIBUTION
Header cover image

Lee and Man Paper Manufacturing

Market Cap

HK$29.3b

Last Updated

2021/05/05 10:33 UTC

Data Sources

Company Financials +

Executive Summary

Lee and 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, and Hong Kong. More Details


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Lee and Man Paper Manufacturing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2314 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2314's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

2314

-2.3%

HK Forestry

-1.6%

HK Market


1 Year Return

52.7%

2314

48.8%

HK Forestry

27.1%

HK Market

Return vs Industry: 2314 exceeded the Hong Kong Forestry industry which returned 48.6% over the past year.

Return vs Market: 2314 exceeded the Hong Kong Market which returned 28.4% over the past year.


Shareholder returns

2314IndustryMarket
7 Day-3.1%-2.3%-1.6%
30 Day-7.2%-4.6%-1.8%
90 Day-4.0%-9.9%-2.6%
1 Year60.8%52.7%55.1%48.8%32.0%27.1%
3 Year-10.6%-25.6%-8.1%-20.8%4.7%-6.4%
5 Year71.2%35.3%76.5%46.6%59.5%32.5%

Long-Term Price Volatility Vs. Market

How volatile is Lee and Man Paper Manufacturing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lee and Man Paper Manufacturing undervalued compared to its fair value and its price relative to the market?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2314 (HK$6.78) is trading below our estimate of fair value (HK$8.1)

Significantly Below Fair Value: 2314 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2314 is good value based on its PE Ratio (8.4x) compared to the XA Forestry industry average (17.1x).

PE vs Market: 2314 is good value based on its PE Ratio (8.4x) compared to the Hong Kong market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 2314 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 2314's PB Ratio (1x) is in line with the HK Forestry industry average.


Future Growth

How is Lee and Man Paper Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2314's forecast earnings growth (5.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 2314's earnings (5.1% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 2314's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2314's revenue (7.2% per year) is forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Revenue: 2314's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2314's Return on Equity is forecast to be low in 3 years time (11.3%).


Past Performance

How has Lee and Man Paper Manufacturing performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2314 has high quality earnings.

Growing Profit Margin: 2314's current net profit margins (13.6%) are higher than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: 2314's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: 2314's earnings growth over the past year (9%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: 2314 earnings growth over the past year (9%) underperformed the Forestry industry 15.3%.


Return on Equity

High ROE: 2314's Return on Equity (11.9%) is considered low.


Financial Health

How is Lee and Man Paper Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: 2314's short term assets (HK$12.0B) exceed its short term liabilities (HK$8.6B).

Long Term Liabilities: 2314's short term assets (HK$12.0B) exceed its long term liabilities (HK$7.5B).


Debt to Equity History and Analysis

Debt Level: 2314's debt to equity ratio (36.8%) is considered satisfactory.

Reducing Debt: 2314's debt to equity ratio has reduced from 82.6% to 36.8% over the past 5 years.

Debt Coverage: 2314's debt is well covered by operating cash flow (34.6%).

Interest Coverage: 2314's interest payments on its debt are well covered by EBIT (28.9x coverage).


Balance Sheet


Dividend

What is Lee and Man Paper Manufacturing current dividend yield, its reliability and sustainability?

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2314's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).

High Dividend: 2314's dividend (4.42%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.03%).


Stability and Growth of Payments

Stable Dividend: 2314's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2314's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37%), 2314's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2314's dividends in 3 years are forecast to be well covered by earnings (35.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.7yrs

Average board tenure


CEO

Man Bun Lee (40 yo)

7.92yrs

Tenure

HK$17,625,000

Compensation

Mr. Man Bun Lee, MH JP, has been the Chief Executive Officer of Lee & Man Paper Manufacturing Limited since June 1, 2013. Mr. Lee served as General Manager of Lee & Man Paper Manufacturing Ltd. He served a...


CEO Compensation Analysis

Compensation vs Market: Man Bun's total compensation ($USD2.27M) is above average for companies of similar size in the Hong Kong market ($USD685.70K).

Compensation vs Earnings: Man Bun's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 2314's board of directors are seasoned and experienced ( 12.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lee and Man Paper Manufacturing Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lee and Man Paper Manufacturing Limited
  • Ticker: 2314
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: HK$29.340b
  • Shares outstanding: 4.35b
  • Website: https://www.leemanpaper.com

Number of Employees


Location

  • Lee and Man Paper Manufacturing Limited
  • Liven House
  • 5th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Biography

Lee and 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, and Hong ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 10:33
End of Day Share Price2021/05/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.