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Lee and Man Paper Manufacturing

SEHK:2314
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2314
SEHK
HK$30B
Market Cap
  1. Home
  2. HK
  3. Materials
Company description

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 and Vietnam. The last earnings update was 9 days ago. More info.


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2314 Share Price and Events
7 Day Returns
1%
SEHK:2314
-3%
HK Forestry
1.7%
HK Market
1 Year Returns
-22.5%
SEHK:2314
-32.8%
HK Forestry
-9.4%
HK Market
2314 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lee and Man Paper Manufacturing (2314) 1% -6.1% 2.9% -22.5% 28.3% 52.6%
HK Forestry -3% -7.4% 0% -32.8% 19.6% 40%
HK Market 1.7% 5.9% 13.7% -9.4% 29.8% 22.4%
1 Year Return vs Industry and Market
  • 2314 outperformed the Forestry industry which returned -32.8% over the past year.
  • 2314 underperformed the Market in Hong Kong which returned -9.4% over the past year.
Price Volatility
2314
Industry
5yr Volatility vs Market

Value

 Is Lee and Man Paper Manufacturing undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lee and Man Paper Manufacturing to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lee and Man Paper Manufacturing.

SEHK:2314 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2314
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.29
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.291 (1 + (1- 25%) (46.1%))
1.494
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.49
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.494 * 6.65%)
11.94%

Discounted Cash Flow Calculation for SEHK:2314 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lee and Man Paper Manufacturing is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2314 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 11.94%)
2019 3,801.75 Analyst x5 3,396.27
2020 3,765.33 Analyst x5 3,004.97
2021 4,245.60 Analyst x4 3,026.87
2022 3,936.00 Analyst x1 2,506.85
2023 3,751.00 Est @ -4.7% 2,134.22
2024 3,650.12 Est @ -2.69% 1,855.32
2025 3,603.34 Est @ -1.28% 1,636.19
2026 3,592.66 Est @ -0.3% 1,457.35
2027 3,606.80 Est @ 0.39% 1,307.04
2028 3,638.41 Est @ 0.88% 1,177.87
Present value of next 10 years cash flows HK$21,502.95
SEHK:2314 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$3,638.41 × (1 + 2%) ÷ (11.94% – 2%)
HK$37,351.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$37,351.80 ÷ (1 + 11.94%)10
HK$12,091.94
SEHK:2314 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$21,502.95 + HK$12,091.94
HK$33,594.89
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$33,594.89 / 4,380.00
HK$7.67
SEHK:2314 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$7.67
Current discount Discount to share price of HK$6.76
= -1 x (HK$6.76 - HK$7.67) / HK$7.67
11.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lee and Man Paper Manufacturing is available for.
Intrinsic value
12%
Share price is HK$6.76 vs Future cash flow value of HK$7.67
Current Discount Checks
For Lee and Man Paper Manufacturing to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lee and Man Paper Manufacturing's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Lee and Man Paper Manufacturing's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lee and Man Paper Manufacturing's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lee and Man Paper Manufacturing's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2314 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$1.10
SEHK:2314 Share Price ** SEHK (2019-03-20) in HKD HK$6.76
Hong Kong Forestry Industry PE Ratio Median Figure of 7 Publicly-Listed Forestry Companies 10.77x
Hong Kong Market PE Ratio Median Figure of 1,496 Publicly-Listed Companies 11.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lee and Man Paper Manufacturing.

SEHK:2314 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2314 Share Price ÷ EPS (both in HKD)

= 6.76 ÷ 1.10

6.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lee and Man Paper Manufacturing is good value based on earnings compared to the HK Forestry industry average.
  • Lee and Man Paper Manufacturing is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Lee and Man Paper Manufacturing's expected growth come at a high price?
Raw Data
SEHK:2314 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
-0.4%per year
Asia Forestry Industry PEG Ratio Median Figure of 10 Publicly-Listed Forestry Companies 0.64x
Hong Kong Market PEG Ratio Median Figure of 467 Publicly-Listed Companies 0.81x

*Line of best fit is calculated by linear regression .

SEHK:2314 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.15x ÷ -0.4%

-14.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lee and Man Paper Manufacturing earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lee and Man Paper Manufacturing's assets?
Raw Data
SEHK:2314 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$5.26
SEHK:2314 Share Price * SEHK (2019-03-20) in HKD HK$6.76
Hong Kong Forestry Industry PB Ratio Median Figure of 10 Publicly-Listed Forestry Companies 1.24x
Hong Kong Market PB Ratio Median Figure of 2,138 Publicly-Listed Companies 0.99x
SEHK:2314 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2314 Share Price ÷ Book Value per Share (both in HKD)

= 6.76 ÷ 5.26

1.29x

* Primary Listing of Lee and Man Paper Manufacturing.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lee and Man Paper Manufacturing is overvalued based on assets compared to the HK Forestry industry average.
X
Value checks
We assess Lee and Man Paper Manufacturing's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Lee and Man Paper Manufacturing has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Lee and Man Paper Manufacturing expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lee and Man Paper Manufacturing expected to grow at an attractive rate?
  • Lee and Man Paper Manufacturing's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Lee and Man Paper Manufacturing's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Lee and Man Paper Manufacturing's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2314 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2314 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts -0.4%
SEHK:2314 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 3.4%
Hong Kong Forestry Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
Asia Forestry Industry Revenue Growth Rate Market Cap Weighted Average 6.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2314 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2314 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 41,378 6,766 5,698 1
2021-12-31 34,961 6,242 4,808 10
2020-12-31 33,750 5,973 4,350 17
2019-12-31 31,922 5,664 4,376 17
SEHK:2314 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 32,208 4,880
2018-09-30 31,487 5,354
2018-06-30 30,767 3,882 5,827
2018-03-31 28,302 3,954 5,434
2017-12-31 25,837 4,025 5,040
2017-09-30 23,625 3,763 4,333
2017-06-30 21,412 3,500 3,626
2017-03-31 19,877 3,711 3,244
2016-12-31 18,342 3,922 2,863
2016-09-30 17,815 3,669 2,752
2016-06-30 17,289 3,416 2,642
2016-03-31 17,452 3,479 2,487

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lee and Man Paper Manufacturing's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Lee and Man Paper Manufacturing's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2314 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Lee and Man Paper Manufacturing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2314 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.27 1.27 1.27 1.00
2021-12-31 1.09 1.39 0.81 8.00
2020-12-31 1.02 1.29 0.76 13.00
2019-12-31 0.99 1.15 0.80 13.00
SEHK:2314 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 1.10
2018-09-30 1.20
2018-06-30 1.30
2018-03-31 1.21
2017-12-31 1.11
2017-09-30 0.95
2017-06-30 0.80
2017-03-31 0.71
2016-12-31 0.63
2016-09-30 0.60
2016-06-30 0.58
2016-03-31 0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lee and Man Paper Manufacturing is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lee and Man Paper Manufacturing's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lee and Man Paper Manufacturing has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lee and Man Paper Manufacturing's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lee and Man Paper Manufacturing has delivered over 20% year on year earnings growth in the past 5 years.
  • Lee and Man Paper Manufacturing's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Lee and Man Paper Manufacturing's 1-year earnings growth is negative, it can't be compared to the HK Forestry industry average.
Earnings and Revenue History
Lee and Man Paper Manufacturing's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lee and Man Paper Manufacturing Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2314 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 32,208.08 4,880.21 2,166.69
2018-09-30 31,487.38 5,353.62 2,063.09
2018-06-30 30,766.68 5,827.04 1,959.48
2018-03-31 28,301.78 5,433.67 1,843.05
2017-12-31 25,836.88 5,040.29 1,726.62
2017-09-30 23,624.69 4,333.12 1,531.00
2017-06-30 21,412.49 3,625.94 1,335.39
2017-03-31 19,877.08 3,244.34 1,236.07
2016-12-31 18,341.68 2,862.74 1,136.75
2016-09-30 17,815.32 2,752.37 1,073.83
2016-06-30 17,288.97 2,642.01 1,010.91
2016-03-31 17,452.31 2,486.84 1,041.10
2015-12-31 17,615.64 2,331.68 1,071.28
2015-09-30 17,551.00 2,221.81 1,115.41
2015-06-30 17,486.35 2,111.95 1,159.53
2015-03-31 17,292.74 2,008.17 1,099.22
2014-12-31 17,099.13 1,904.39 1,038.92
2014-09-30 17,137.62 1,897.00 1,002.03
2014-06-30 17,176.11 1,889.61 965.14
2014-03-31 17,073.24 1,918.91 949.59
2013-12-31 16,970.37 1,948.20 934.05
2012-12-31 15,231.99 1,761.36 880.31
2012-09-30 14,578.94 1,379.03 885.37
2012-06-30 14,647.25 1,365.24 863.82
2012-03-31 14,715.55 1,351.45 842.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lee and Man Paper Manufacturing has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Lee and Man Paper Manufacturing used its assets more efficiently than the HK Forestry industry average last year based on Return on Assets.
  • Lee and Man Paper Manufacturing has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lee and Man Paper Manufacturing's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lee and Man Paper Manufacturing has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Lee and Man Paper Manufacturing's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lee and Man Paper Manufacturing's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lee and Man Paper Manufacturing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lee and Man Paper Manufacturing's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lee and Man Paper Manufacturing's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lee and Man Paper Manufacturing Company Filings, last reported 2 months ago.

SEHK:2314 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 23,145.85 13,790.50 2,011.94
2018-09-30 23,145.85 13,790.50 2,011.94
2018-06-30 24,663.49 15,929.68 1,521.37
2018-03-31 24,663.49 15,929.68 1,521.37
2017-12-31 21,916.12 15,077.70 2,248.64
2017-09-30 21,916.12 15,077.70 2,248.64
2017-06-30 18,748.08 14,223.48 1,000.71
2017-03-31 18,748.08 14,223.48 1,000.71
2016-12-31 16,822.97 13,546.84 1,274.20
2016-09-30 16,822.97 13,546.84 1,274.20
2016-06-30 17,283.27 13,259.79 1,424.30
2016-03-31 17,283.27 13,259.79 1,424.30
2015-12-31 17,236.19 14,262.38 2,958.66
2015-09-30 17,236.19 14,262.38 2,958.66
2015-06-30 17,594.27 11,797.71 1,393.50
2015-03-31 17,594.27 11,797.71 1,393.50
2014-12-31 17,476.98 12,860.79 2,032.57
2014-09-30 17,476.98 12,860.79 2,032.57
2014-06-30 16,656.14 12,374.13 941.43
2014-03-31 16,656.14 12,374.13 941.43
2013-12-31 16,346.49 10,959.11 710.51
2012-12-31 14,598.19 9,073.51 657.11
2012-09-30 13,813.71 9,706.84 723.91
2012-06-30 13,813.71 9,706.84 723.91
2012-03-31 13,498.21 9,568.75 731.50
  • Lee and Man Paper Manufacturing's level of debt (59.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (67.1% vs 59.6% today).
  • Debt is well covered by operating cash flow (28.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.9x coverage).
X
Financial health checks
We assess Lee and Man Paper Manufacturing's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lee and Man Paper Manufacturing has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.18%
Current annual income from Lee and Man Paper Manufacturing dividends. Estimated to be 5.01% next year.
If you bought HK$2,000 of Lee and Man Paper Manufacturing shares you are expected to receive HK$104 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lee and Man Paper Manufacturing's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.96%).
  • Lee and Man Paper Manufacturing's dividend is below the markets top 25% of dividend payers in Hong Kong (5.3%).
Upcoming dividend payment

Purchase Lee and Man Paper Manufacturing on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2314 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Asia Forestry Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 5.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 922 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2314 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.44 1.00
2021-12-31 0.36 7.00
2020-12-31 0.34 15.00
2019-12-31 0.32 14.00
SEHK:2314 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-11 0.350 5.162
2018-08-08 0.400 5.678
2018-07-31 0.400 5.014
2018-02-28 0.400 4.777
2017-08-21 0.340 3.631
2017-02-28 0.220 3.218
2016-03-31 0.190 3.186
2016-03-01 0.190 3.660
2015-08-10 0.160 3.591
2015-03-31 0.143 3.012
2015-03-09 0.143 3.816
2014-04-07 0.146 3.437
2014-03-17 0.146 3.287
2013-04-05 0.100 1.976
2013-03-18 0.100 1.649
2012-11-20 0.102 2.024
2012-06-12 0.100 2.924
2011-11-24 0.128 3.951
2011-06-15 0.140 4.187
2010-11-08 0.140 2.558
2010-06-21 0.160 2.669
2009-11-18 0.110 1.968
2009-11-09 0.110 2.210
2009-07-29 0.000 0.000
2009-07-20 0.000 0.000
2009-03-23 0.025 1.456

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Lee and Man Paper Manufacturing's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Lee and Man Paper Manufacturing's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lee and Man Paper Manufacturing afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lee and Man Paper Manufacturing has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lee and Man Paper Manufacturing's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Man Bun Lee
COMPENSATION HK$16,500,000
AGE 38
TENURE AS CEO 5.8 years
CEO Bio

Mr. Man Bun Lee, MH 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 as Managing Director and Assistant General Manager of Lee & Man Paper Manufacturing Ltd. Mr. Lee is responsible for construction of Hongmei Industrial Park, repair and maintenance of production machines and factory staff management. He joined the Lee & Man Group in July 2003. He has been an Executive Director of Lee & Man Paper Manufacturing Ltd. since August 16, 2004. Mr. Lee serves as Director of Yan Chai Hospital. Mr. Lee holds a bachelor's degree of Applied Science in Chemical Engineering from the University of British Columbia in Canada.

CEO Compensation
  • Man Bun's compensation has been consistent with company performance over the past year.
  • Man Bun's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

Raymond Lee

TITLE
Founder & Executive Chairman
COMPENSATION
HK$17M
AGE
47

Man Bun Lee

TITLE
CEO & Executive Director
COMPENSATION
HK$17M
AGE
38
TENURE
5.8 yrs

Ross Li

TITLE
Deputy GM & Executive Director
COMPENSATION
HK$4M
AGE
43

Kwok Keung Cheung

TITLE
CFO & Company Secretary
AGE
51

Jude Lee

TITLE
Head of Information Technology
AGE
43

Harry Ng

TITLE
Head of Quality Assurance
AGE
42
Board of Directors Tenure

Average tenure and age of the Lee and Man Paper Manufacturing board of directors in years:

10.5
Average Tenure
54
Average Age
  • The average tenure for the Lee and Man Paper Manufacturing board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Raymond Lee

TITLE
Founder & Executive Chairman
COMPENSATION
HK$17M
AGE
47
TENURE
5.8 yrs

Man Bun Lee

TITLE
CEO & Executive Director
COMPENSATION
HK$17M
AGE
38

Ross Li

TITLE
Deputy GM & Executive Director
COMPENSATION
HK$4M
AGE
43
TENURE
5.7 yrs

David Chau

TITLE
Independent Non-Executive Director
COMPENSATION
HK$398K
AGE
54
TENURE
10.4 yrs

Tony Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$398K
AGE
75
TENURE
15.5 yrs

Chung Kwong Poon

TITLE
Non-Executive Director
AGE
78
TENURE
14.1 yrs

Peter A. Davies

TITLE
Independent Non-Executive Director
COMPENSATION
HK$398K
AGE
75
TENURE
10.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Lee and Man Paper Manufacturing's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lee and Man Paper Manufacturing has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Lee and Man Paper Manufacturing Limited's (HKG:2314) Earnings Dropped -3.2%, Did Its Industry Show Weakness Too?

Today I will assess 2314's latest performance announced on 31 December 2018 and compare these figures to its longer term trend and industry movements. … 2314's trailing twelve-month earnings (from 31 December 2018) of HK$4.9b has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 26%, indicating the rate at which 2314 is growing has slowed down

Simply Wall St -

Should Lee and Man Paper Manufacturing (HKG:2314) Be Disappointed With Their 62% Profit?

To wit, the Lee and Man Paper Manufacturing share price has climbed 62% in five years, easily topping the market return of 19% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Lee and Man Paper Manufacturing achieved compound earnings per share (EPS) growth of 28% per year.

Simply Wall St -

What Type Of Shareholder Owns Lee and Man Paper Manufacturing Limited's (HKG:2314)?

If you want to know who really controls Lee and Man Paper Manufacturing Limited (HKG:2314), then you'll have to look at the makeup of its share registry. … Lee and Man Paper Manufacturing is a pretty big company. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Why Lee and Man Paper Manufacturing Limited (HKG:2314) Could Have A Place In Your Portfolio

Help shape the future of investing tools and you could win a $250 gift card! … Lee and Man Paper Manufacturing Limited (HKG:2314) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

Is Lee and Man Paper Manufacturing Limited's (HKG:2314) CEO Paid Enough Relative To Peers?

Man Bun Lee has been the CEO of Lee and Man Paper Manufacturing Limited (HKG:2314) since 2013. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Man Bun Lee's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Does Lee and Man Paper Manufacturing Limited (HKG:2314) Have A Place In Your Portfolio?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, Lee and Man Paper Manufacturing Limited (HKG:2314) has paid a dividend to shareholders. … Does Lee and Man Paper Manufacturing tick all the boxes of a great dividend stock?

Simply Wall St -

Is Lee and Man Paper Manufacturing Limited's (HKG:2314) ROE Of 24% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.24. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Lee and Man Paper Manufacturing Limited's (HKG:2314) Balance Sheet A Threat To Its Future?

Mid-caps stocks, like Lee and Man Paper Manufacturing Limited (HKG:2314) with a market capitalization of HK$29b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Is Lee and Man Paper Manufacturing Limited's (HKG:2314) P/E Ratio Really That Good?

We'll look at Lee and Man Paper Manufacturing Limited's (HKG:2314) P/E ratio and reflect on what it tells us about the company's share price. … Lee and Man Paper Manufacturing has a P/E ratio of 5.06, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Top Bear Market Investment: Lee and Man Paper Manufacturing Limited (HKG:2314)

Lee and Man Paper Manufacturing Limited is a financially healthy and robust stock with a proven track record of outperformance. … We all know Lee and Man Paper Manufacturing, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … 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 and Vietnam

Simply Wall St -

Company Info

Description

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 and Vietnam. It operates through Packaging Paper, Pulp, and Tissue Paper 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.; unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc.; and toilet rolls for wiping and cleaning of hands, faces, food, etc., as well as procures raw materials. The company was founded in 1994 and is based in Kwun Tong, Hong Kong. Lee and Man Paper Manufacturing Limited is a subsidiary of Gold Best Holdings Ltd.

Details
Name: Lee and Man Paper Manufacturing Limited
2314
Exchange: SEHK
Founded: 1994
HK$29,915,400,000
4,380,000,000
Website: http://www.leemanpaper.com
Address: Lee and Man Paper Manufacturing Limited
Liven House,
5th Floor,
Kwun Tong,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2314 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 26. Sep 2003
OTCPK LMPM.F Ordinary Shares Pink Sheets LLC US USD 26. Sep 2003
DB LMP Ordinary Shares Deutsche Boerse AG DE EUR 26. Sep 2003
SHSC 2314 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 26. Sep 2003
SZSC 2314 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 26. Sep 2003
OTCPK LMPM.Y SPON ADR Pink Sheets LLC US USD 19. Jul 2007
Number of employees
Current staff
Staff numbers
7,800
Lee and Man Paper Manufacturing employees.
Industry
Paper Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 12:39
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/03/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.