Lee & Man Paper Manufacturing Limited

SEHK:2314 Stock Report

Market Cap: HK$10.0b

Lee & Man Paper Manufacturing Valuation

Is 2314 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2314 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2314 (HK$2.32) is trading above our estimate of fair value (HK$1.77)

Significantly Below Fair Value: 2314 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2314?

Key metric: As 2314 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2314. This is calculated by dividing 2314's market cap by their current earnings.
What is 2314's PE Ratio?
PE Ratio6.6x
EarningsHK$1.50b
Market CapHK$9.96b

Price to Earnings Ratio vs Peers

How does 2314's PE Ratio compare to its peers?

The above table shows the PE ratio for 2314 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.9x
2689 Nine Dragons Paper (Holdings)
18.6x34.4%HK$14.9b
3983 China BlueChemical
6.4x4.3%HK$9.3b
1313 China Resources Building Materials Technology Holdings
35.7x35.9%HK$12.0b
336 Huabao International Holdings
62.9xn/aHK$7.4b
2314 Lee & Man Paper Manufacturing
6.6x12.3%HK$10.0b

Price-To-Earnings vs Peers: 2314 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (30.9x).


Price to Earnings Ratio vs Industry

How does 2314's PE Ratio compare vs other companies in the Asian Forestry Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2314 6.6xIndustry Avg. 18.1xNo. of Companies25PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2314 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the Asian Forestry industry average (18.1x).


Price to Earnings Ratio vs Fair Ratio

What is 2314's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2314 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.6x
Fair PE Ratio9x

Price-To-Earnings vs Fair Ratio: 2314 is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2314 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.32
HK$2.47
+6.3%
25.3%HK$3.30HK$1.80n/a3
Nov ’25HK$2.39
HK$2.44
+2.1%
20.5%HK$3.30HK$1.80n/a5
Oct ’25HK$2.79
HK$2.74
-1.9%
33.3%HK$4.63HK$1.80n/a6
Sep ’25HK$2.18
HK$2.74
+25.6%
33.3%HK$4.63HK$1.80n/a6
Aug ’25HK$2.40
HK$3.05
+27.0%
27.0%HK$4.63HK$2.10n/a7
Jul ’25HK$2.31
HK$3.05
+31.9%
27.0%HK$4.63HK$2.10n/a7
Jun ’25HK$2.41
HK$3.06
+27.0%
26.4%HK$4.63HK$2.20n/a7
May ’25HK$2.37
HK$2.79
+17.8%
32.7%HK$4.63HK$1.80n/a8
Apr ’25HK$2.36
HK$2.87
+21.5%
30.3%HK$4.63HK$1.80n/a8
Mar ’25HK$2.24
HK$2.93
+31.0%
33.8%HK$4.54HK$1.80n/a7
Feb ’25HK$2.10
HK$2.96
+41.0%
30.6%HK$4.54HK$1.80n/a8
Jan ’25HK$2.29
HK$2.96
+29.3%
30.6%HK$4.54HK$1.80n/a8
Dec ’24HK$2.16
HK$2.95
+36.8%
28.9%HK$4.54HK$1.80HK$2.329
Nov ’24HK$2.25
HK$2.95
+31.3%
28.9%HK$4.54HK$1.80HK$2.399
Oct ’24HK$2.29
HK$3.05
+33.4%
24.9%HK$4.54HK$2.00HK$2.799
Sep ’24HK$2.31
HK$2.99
+29.3%
25.1%HK$4.54HK$2.00HK$2.1810
Aug ’24HK$2.65
HK$3.50
+32.0%
24.8%HK$5.20HK$2.40HK$2.4011
Jul ’24HK$2.60
HK$3.78
+45.3%
18.4%HK$5.20HK$2.70HK$2.3112
Jun ’24HK$2.65
HK$3.92
+47.8%
21.1%HK$5.80HK$2.70HK$2.4114
May ’24HK$3.33
HK$3.92
+17.6%
21.2%HK$5.80HK$2.67HK$2.3714
Apr ’24HK$3.14
HK$3.94
+25.6%
20.5%HK$5.80HK$2.67HK$2.3614
Mar ’24HK$3.43
HK$3.96
+15.6%
23.0%HK$6.00HK$2.67HK$2.2414
Feb ’24HK$3.53
HK$3.94
+11.5%
28.8%HK$6.80HK$2.50HK$2.1014
Jan ’24HK$3.44
HK$3.91
+13.6%
30.9%HK$6.80HK$2.40HK$2.2913
Dec ’23HK$3.03
HK$3.91
+29.0%
30.9%HK$6.80HK$2.40HK$2.1613

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies