SEHK:2314

Stock Analysis Report

Lee and Man Paper Manufacturing

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 and Vietnam.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

6.5%

2314

5.2%

HK Forestry

2.4%

HK Market


1 Year Return

-34.3%

2314

-21.8%

HK Forestry

0.4%

HK Market

Return vs Industry: 2314 underperformed the Hong Kong Forestry industry which returned -21.8% over the past year.

Return vs Market: 2314 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

2314IndustryMarket
7 Day6.5%5.2%2.4%
30 Day-6.0%-2.4%-2.6%
90 Day-15.4%-6.0%-5.6%
1 Year-30.5%-34.3%-16.8%-21.8%4.0%0.4%
3 Year-20.1%-30.4%-13.8%-23.7%15.1%3.5%
5 Year26.3%2.3%9.5%2.5%20.3%0.3%

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?

5.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 2314 (HK$4.41) is trading above our estimate of fair value (HK$4.06)

Significantly Undervalued: 2314 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2314 is good value based on its PE Ratio (5.4x) compared to the Forestry industry average (8.3x).

PE vs Market: 2314 is good value based on its PE Ratio (5.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2314 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 2314 is good value based on its PB Ratio (0.7x) compared to the HK Forestry industry average (0.8x).


Next Steps

Future Growth

How is Lee and Man Paper Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2314's forecast earnings growth (3.9% per year) is above the savings rate (2%).

Earnings vs Market: 2314's earnings (3.9% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 2314's revenue (5.1% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2314's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2314's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

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

22.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2314's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: 2314's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2314 had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Forestry industry average (-38.6%).


Return on Equity

High ROE: 2314's Return on Equity (13.8%) is considered low.


Return on Assets

ROA vs Industry: 2314 has a higher Return on Assets than the Forestry industry average last year.


Return on Capital Employed

ROCE Improving: 2314 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 2314's short term assets (HK$15.4B) exceeds its short term liabilities (HK$10.1B)

Long Term Liabilities: 2314's short term assets (15.4B) exceeds its long term liabilities (9.5B)


Debt to Equity History and Analysis

Debt Level: 2314's debt to equity ratio (54.1%) is considered high

Reducing Debt: 2314's debt to equity ratio has reduced from 74.3% to 54.1% over the past 5 years.

Debt Coverage: 2314's debt is well covered by operating cash flow (48%).

Interest Coverage: 2314's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet

Inventory Level: 2314 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2314's debt is covered by short term assets (assets are 1.097810x debt).


Next Steps

Dividend

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

5.90%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.3%markettop25%6.3%industryaverage2.9%forecastin3Years5.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2314's dividend (5.9%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2314's dividend (5.9%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

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 (34.3%), 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 (37.2% payout ratio).


Next Steps

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?

11.1yrs

Average board tenure


CEO

Man Bun Lee (39yo)

6.3yrs

Tenure

HK$16,500,000

Compensation

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 Ma ...


CEO Compensation Analysis

Compensation vs. Market: Man Bun's total compensation ($USD2.10M) is about average for companies of similar size in the Hong Kong market ($USD496.06K).

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


Board Age and Tenure

11.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 2314's board of directors are seasoned and experienced ( 11.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Kwok Keung Cheung (52yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Raymond Lee (48yo)

    Founder & Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: HK$16.50m
  • Man Bun Lee (39yo)

    CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$16.50m
  • Ross Li (44yo)

    Deputy GM & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$3.70m
  • Jude Lee (44yo)

    Head of Information Technology

    • Tenure: 0yrs
  • Harry Ng (43yo)

    Head of Quality Assurance

    • Tenure: 0yrs

Board Members

  • Tony Wong (76yo)

    Independent Non-Executive Director

    • Tenure: 16.1yrs
    • Compensation: HK$450.00k
  • Raymond Lee (48yo)

    Founder & Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: HK$16.50m
  • Chung Kwong Poon (79yo)

    Non-Executive Director

    • Tenure: 14.7yrs
  • Man Bun Lee (39yo)

    CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$16.50m
  • Ross Li (44yo)

    Deputy GM & Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$3.70m
  • Peter A. Davies (76yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$450.00k
  • David Chau (55yo)

    Independent Non-Executive Director

    • Tenure: 11yrs
    • Compensation: HK$450.00k

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$19.345b
  • Shares outstanding: 4.37b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMPM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2003
2314SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2003
LMPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2003
2314SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2003
2314SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2003
LMPM.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDJul 2007

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 and Vietnam. It operates thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:39
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.