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Lee & Man Chemical

SEHK:746
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
746
SEHK
HK$4B
Market Cap
  1. Home
  2. HK
  3. Materials
Company description

Lee & Man Chemical Company Limited, an investment holding company, manufactures and sells chemical products in the People’s Republic of China and Hong Kong. The last earnings update was 10 days ago. More info.


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746 Share Price and Events
7 Day Returns
0.6%
SEHK:746
-0.4%
HK Chemicals
1.7%
HK Market
1 Year Returns
-17.5%
SEHK:746
-16.5%
HK Chemicals
-9.5%
HK Market
746 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lee & Man Chemical (746) 0.6% -4.9% -3.8% -17.5% 110.9% 48.7%
HK Chemicals -0.4% 5% 11.8% -16.5% 15.1% 16.2%
HK Market 1.7% 3.7% 14.2% -9.5% 29.3% 20.7%
1 Year Return vs Industry and Market
  • 746 underperformed the Chemicals industry which returned -16.5% over the past year.
  • 746 underperformed the Market in Hong Kong which returned -9.5% over the past year.
Price Volatility
746
Industry
5yr Volatility vs Market

Value

 Is Lee & Man Chemical 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 & Man Chemical 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 & Man Chemical.

SEHK:746 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10%
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:746
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 25%) (44.72%))
1.202
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.202 * 6.65%)
9.99%

Discounted Cash Flow Calculation for SEHK:746 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Lee & Man Chemical 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:746 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.99%)
2019 363.23 Est @ 2.04% 330.22
2020 370.59 Est @ 2.03% 306.30
2021 378.07 Est @ 2.02% 284.09
2022 385.69 Est @ 2.01% 263.48
2023 393.44 Est @ 2.01% 244.36
2024 401.35 Est @ 2.01% 226.62
2025 409.40 Est @ 2.01% 210.16
2026 417.61 Est @ 2.01% 194.90
2027 425.99 Est @ 2% 180.74
2028 434.52 Est @ 2% 167.61
Present value of next 10 years cash flows HK$2,408.48
SEHK:746 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$434.52 × (1 + 2%) ÷ (9.99% – 2%)
HK$5,546.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$5,546.19 ÷ (1 + 9.99%)10
HK$2,139.35
SEHK:746 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$2,408.48 + HK$2,139.35
HK$4,547.83
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$4,547.83 / 825.00
HK$5.51
SEHK:746 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$5.51
Current discount Discount to share price of HK$5.04
= -1 x (HK$5.04 - HK$5.51) / HK$5.51
8.6%

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

Current Discount
Amount off the current price Lee & Man Chemical is available for.
Intrinsic value
9%
Share price is HK$5.04 vs Future cash flow value of HK$5.51
Current Discount Checks
For Lee & Man Chemical to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lee & Man Chemical's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Lee & Man Chemical'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 & Man Chemical's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lee & Man Chemical's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:746 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$1.06
SEHK:746 Share Price ** SEHK (2019-03-21) in HKD HK$5.04
Hong Kong Chemicals Industry PE Ratio Median Figure of 28 Publicly-Listed Chemicals Companies 9.09x
Hong Kong Market PE Ratio Median Figure of 1,498 Publicly-Listed Companies 10.92x

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

** Primary Listing of Lee & Man Chemical.

SEHK:746 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:746 Share Price ÷ EPS (both in HKD)

= 5.04 ÷ 1.06

4.76x

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

  • Lee & Man Chemical is good value based on earnings compared to the HK Chemicals industry average.
  • Lee & Man Chemical is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Lee & Man Chemical's expected growth come at a high price?
Raw Data
SEHK:746 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-12.8%per year
Hong Kong Chemicals Industry PEG Ratio Median Figure of 5 Publicly-Listed Chemicals Companies 0.12x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Lee & Man Chemical, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lee & Man Chemical's assets?
Raw Data
SEHK:746 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$4.22
SEHK:746 Share Price * SEHK (2019-03-21) in HKD HK$5.04
Hong Kong Chemicals Industry PB Ratio Median Figure of 34 Publicly-Listed Chemicals Companies 0.89x
Hong Kong Market PB Ratio Median Figure of 2,138 Publicly-Listed Companies 0.99x
SEHK:746 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:746 Share Price ÷ Book Value per Share (both in HKD)

= 5.04 ÷ 4.22

1.2x

* Primary Listing of Lee & Man Chemical.

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

  • Lee & Man Chemical is overvalued based on assets compared to the HK Chemicals industry average.
X
Value checks
We assess Lee & Man Chemical'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 Chemicals 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 Chemicals industry average (and greater than 0)? (1 check)
  5. Lee & Man Chemical 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 & Man Chemical expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Lee & Man Chemical, future earnings growth has been estimated based on fundamentals.
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
-12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lee & Man Chemical expected to grow at an attractive rate?
  • Lee & Man Chemical'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 & Man Chemical's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare Lee & Man Chemical's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:746 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:746 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -12.8%
Hong Kong Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
Hong Kong Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*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:746 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:746 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,877 873
2018-09-30 3,776 940
2018-06-30 3,674 1,241 1,007
2018-03-31 3,324 1,074 855
2017-12-31 2,974 906 703
2017-09-30 2,615 673 521
2017-06-30 2,256 440 338
2017-03-31 2,035 493 277
2016-12-31 1,814 547 216
2016-09-30 1,768 565 221
2016-06-30 1,721 583 226
2016-03-31 1,714 615 248

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lee & Man Chemical's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Lee & Man Chemical is high growth as no revenue estimate data is available.
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:746 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 0 Analyst Estimates (S&P Global) See Below

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

SEHK:746 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 1.06
2018-09-30 1.14
2018-06-30 1.22
2018-03-31 1.04
2017-12-31 0.85
2017-09-30 0.63
2017-06-30 0.41
2017-03-31 0.34
2016-12-31 0.26
2016-09-30 0.27
2016-06-30 0.27
2016-03-31 0.30

*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.
  • Unable to establish if Lee & Man Chemical will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Lee & Man Chemical'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 Hong Kong 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 & Man Chemical 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 & Man Chemical 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 & Man Chemical's growth in the last year to its industry (Chemicals).
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 & Man Chemical has delivered over 20% year on year earnings growth in the past 5 years.
  • Lee & Man Chemical's 1-year earnings growth is less than its 5-year average (24.1% vs 27.8%)
  • Lee & Man Chemical's earnings growth has exceeded the HK Chemicals industry average in the past year (24.1% vs 23.3%).
Earnings and Revenue History
Lee & Man Chemical'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 & Man Chemical Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:746 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 3,876.78 872.64 457.32 158.01
2018-09-30 3,775.59 939.78 444.96 157.38
2018-06-30 3,674.40 1,006.93 432.60 156.76
2018-03-31 3,324.08 854.99 403.48 140.89
2017-12-31 2,973.75 703.05 374.36 125.03
2017-09-30 2,615.04 520.74 332.54 97.17
2017-06-30 2,256.34 338.43 290.73 69.32
2017-03-31 2,035.09 277.31 275.36 57.24
2016-12-31 1,813.85 216.20 259.99 45.17
2016-09-30 1,767.52 221.01 230.14 71.49
2016-06-30 1,721.18 225.82 200.30 97.81
2016-03-31 1,713.53 247.75 206.91 87.22
2015-12-31 1,705.88 269.68 213.52 76.63
2015-09-30 1,663.82 305.71 211.08 80.27
2015-06-30 1,621.76 341.75 208.64 83.90
2015-03-31 1,590.89 335.93 193.55 83.90
2014-12-31 1,560.03 330.11 178.47 83.90
2014-09-30 1,516.71 320.08 181.62 80.65
2014-06-30 1,473.40 310.05 184.78 77.39
2014-03-31 1,401.26 309.39 174.93 77.39
2013-12-31 1,329.13 308.73 165.07 77.39
2013-09-30 1,273.75 310.36 148.36 64.41
2013-06-30 1,218.37 312.00 131.64 51.43
2013-03-31 1,369.44 336.97 148.37 51.43
2012-12-31 1,520.51 361.94 165.10 51.43
2012-09-30 1,609.55 398.17 191.62 29.85
2012-06-30 1,698.58 449.15 221.70 4.14
2012-03-31 1,753.46 543.06 208.78 4.14

*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 & Man Chemical has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Lee & Man Chemical used its assets more efficiently than the HK Chemicals industry average last year based on Return on Assets.
  • Lee & Man Chemical has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lee & Man Chemical'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 Chemicals 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 & Man Chemical has a total score of 5/6, 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 & Man Chemical'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 & Man Chemical's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lee & Man Chemical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lee & Man Chemical's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lee & Man Chemical'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 not covered by short term assets, assets are 0.9x 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 & Man Chemical Company Filings, last reported 2 months ago.

SEHK:746 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,478.67 1,874.21 593.07
2018-09-30 3,478.67 1,874.21 593.07
2018-06-30 3,479.87 2,055.94 333.48
2018-03-31 3,479.87 2,055.94 333.48
2017-12-31 3,094.43 2,170.78 467.51
2017-09-30 3,094.43 2,170.78 467.51
2017-06-30 2,574.84 2,242.71 305.58
2017-03-31 2,574.84 2,242.71 305.58
2016-12-31 2,342.03 1,969.05 228.09
2016-09-30 2,342.03 1,969.05 228.09
2016-06-30 2,424.26 1,762.27 67.21
2016-03-31 2,424.26 1,762.27 67.21
2015-12-31 2,346.28 1,862.06 252.72
2015-09-30 2,346.28 1,862.06 252.72
2015-06-30 2,395.42 1,944.09 315.63
2015-03-31 2,395.42 1,944.09 315.63
2014-12-31 2,297.96 1,939.89 596.75
2014-09-30 2,297.96 1,939.89 596.75
2014-06-30 2,202.55 1,852.26 862.40
2014-03-31 2,202.55 1,852.26 862.40
2013-12-31 2,130.61 1,675.00 1,061.50
2013-09-30 2,130.61 1,675.00 1,061.50
2013-06-30 2,013.49 1,692.99 1,513.46
2013-03-31 2,013.49 1,692.99 1,513.46
2012-12-31 1,893.84 1,424.42 1,520.22
2012-09-30 1,893.84 1,424.42 1,520.22
2012-06-30 1,748.02 1,389.30 1,537.82
2012-03-31 1,748.02 1,389.30 1,537.82
  • Lee & Man Chemical's level of debt (53.9%) 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 (78.7% vs 53.9% today).
  • Debt is well covered by operating cash flow (66.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.9x coverage).
X
Financial health checks
We assess Lee & Man Chemical'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 & Man Chemical 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 & Man Chemical'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
7.54%
Current annual income from Lee & Man Chemical dividends.
If you bought HK$2,000 of Lee & Man Chemical shares you are expected to receive HK$151 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 & Man Chemical's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.97%).
  • Lee & Man Chemical's dividend is above the markets top 25% of dividend payers in Hong Kong (5.3%).
Upcoming dividend payment

Purchase Lee & Man Chemical 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:746 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 0 Analyst Estimates (S&P Global) See Below
Hong Kong Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 7.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 924 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:746 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-11 0.380 7.511
2018-07-31 0.460 8.562
2018-02-28 0.300 4.928
2017-08-30 0.100 2.030
2017-03-30 0.080 2.052
2017-02-28 0.080 2.420
2016-08-01 0.100 4.074
2016-03-31 0.120 5.102
2016-03-01 0.120 5.239
2015-08-20 0.150 5.774
2015-03-31 0.160 3.739
2015-03-09 0.160 4.263
2014-08-11 0.140 3.077
2014-07-31 0.140 3.212
2014-04-08 0.140 3.653
2014-03-17 0.140 4.072
2013-08-19 0.140 3.828
2013-08-05 0.140 4.225
2013-05-13 0.160 4.697
2012-08-13 0.200 4.744
2012-02-27 0.290 5.851
2011-07-28 0.340 6.434
2011-02-21 0.260 2.742
2010-08-19 0.180 2.418
2010-04-07 0.100 1.666
2009-08-31 0.045 1.447
2009-04-21 0.040 3.103
2009-03-23 0.050 7.966

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 & Man Chemical's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Lee & Man Chemical'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 & Man Chemical afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lee & Man Chemical 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 & Man Chemical'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 Yan Lee
COMPENSATION HK$17,386,000
AGE 40
TENURE AS CEO 4.6 years
CEO Bio

Mr. Man Yan Lee has been the Chief Executive Officer of Lee & Man Chemical Company Limited since August 1, 2014. Mr. Lee has been an Executive Director of Lee & Man Chemical Company Limited and Lee & Man Holding Ltd., since August 16, 2004. Mr. Lee joined the Lee & Man Chemical Group in 2000. He is responsible for the sales and marketing of the Group’s business in the United States market. Mr. Lee graduated from the University of British Columbia, Canada with a bachelor's degree in commerce.

CEO Compensation
  • Man Yan's compensation has increased by more than 20% in the past year.
  • Man Yan's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

Siu Wai

TITLE
Chairman
COMPENSATION
HK$9M
AGE
73

Man Yan Lee

TITLE
Group CEO & Executive Director
COMPENSATION
HK$17M
AGE
40
TENURE
4.6 yrs

Albert Chan

TITLE
Chief Strategist & Executive Director
COMPENSATION
HK$5M
AGE
67

Zuo Yang

TITLE
Executive Director of the Group and GM of Jiangxi Lee & Man Chemical Limited
COMPENSATION
HK$917K
AGE
56

Kwok Keung Cheung

TITLE
Company Secretary
AGE
51
TENURE
2.6 yrs

Hiu Lam

TITLE
Group Financial Controller
AGE
47

Dan Hui

TITLE
Deputy General Manager of Jiangsu Lee & Man Chemical Limited
AGE
63
Board of Directors Tenure

Average tenure and age of the Lee & Man Chemical board of directors in years:

8.8
Average Tenure
67
Average Age
  • The tenure for the Lee & Man Chemical board of directors is about average.
Board of Directors

Siu Wai

TITLE
Chairman
COMPENSATION
HK$9M
AGE
73

Man Yan Lee

TITLE
Group CEO & Executive Director
COMPENSATION
HK$17M
AGE
40
TENURE
14.6 yrs

Albert Chan

TITLE
Chief Strategist & Executive Director
COMPENSATION
HK$5M
AGE
67
TENURE
2.8 yrs

Zuo Yang

TITLE
Executive Director of the Group and GM of Jiangxi Lee & Man Chemical Limited
COMPENSATION
HK$917K
AGE
56
TENURE
7.8 yrs

Victor Heng

TITLE
Independent Non Executive Director
COMPENSATION
HK$150K
AGE
41
TENURE
8.8 yrs

Aaron Wan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$150K
AGE
68

Tony Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$150K
AGE
75
TENURE
14.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
11. Mar 19 Sell Value Partners Hong Kong Limited Company 06. Mar 19 06. Mar 19 -118,000 HK$5.49 HK$-647,277
X
Management checks
We assess Lee & Man Chemical'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 & Man Chemical 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

Can We See Significant Insider Ownership On The Lee & Man Chemical Company Limited (HKG:746) Share Register?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Lee & Man Chemical is a smaller company with a market capitalization of HK$4.1b, so it may still be flying under the radar of many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

What You Must Know About Lee & Man Chemical Company Limited's (HKG:746) Beta Value

Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

What You Must Know About Lee & Man Chemical Company Limited's (HKG:746) Financial Strength

Investors are always looking for growth in small-cap stocks like Lee & Man Chemical Company Limited (HKG:746), with a market cap of HK$4.4b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Can Lee & Man Chemical Company Limited (HKG:746) Maintain Its Strong Returns?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.29 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Lee & Man Chemical Company Limited's (HKG:746) CEO Pay Matters To You

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … After that, we will consider the growth in the business. … How Does Man Lee's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Lee & Man Chemical Company Limited (HKG:746) A Smart Choice For Dividend Investors?

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 & Man Chemical Company Limited (HKG:746) has been paying a dividend to shareholders. … Here's how I find good dividend stocks

Simply Wall St -

Do You Like Lee & Man Chemical Company Limited (HKG:746) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Lee & Man Chemical Company Limited's (HKG:746) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Should Investors Know About Lee & Man Chemical Company Limited's (HKG:746) Capital Returns?

and want a simplistic look at the return on Lee & Man Chemical Company Limited (HKG:746) stock. … Therefore, looking at how efficiently Lee & Man Chemical is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

One Thing To Remember About The Lee & Man Chemical Company Limited (HKG:746) Share Price

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Is Lee & Man Chemical Company Limited's (HKG:746) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as Lee & Man Chemical Company Limited (HKG:746) with its market cap of HK$4.0b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Company Info

Description

Lee & Man Chemical Company Limited, an investment holding company, manufactures and sells chemical products in the People’s Republic of China and Hong Kong. It offers polymers, including polytetrafluoroethylene and chlorinated polyvinyl chloride; basic chemicals, such as sodium hydroxide, chlorine, methyl chloride, dichloromethane, chloroform, hydrogen peroxide, hydrochloric acid, hydrofluoric acid, anhydrous hydrogen fluoride, fluosilicic acid, and hexafluoropropylene; food/water additives comprising sodium hydroxide and sodium hypochlorite; and refrigerants consisting of methylene fluoride. The company also provides coating solutions for architectural and industrial markets, as well as papermaking chemicals. In addition, it is involved in the property development business. The company was formerly known as Lee & Man Holding Limited and changed its name to Lee & Man Chemical Company Limited in June 2011. The company was founded in 1976 and is based in Kwun Tong, Hong Kong. Lee & Man Chemical Company Limited is a subsidiary of Fortune Star Tradings Limited.

Details
Name: Lee & Man Chemical Company Limited
746
Exchange: SEHK
Founded: 1976
HK$4,191,000,000
825,000,000
Website: http://www.leemanchemical.com
Address: Lee & Man Chemical Company Limited
Liven House,
8th Floor,
Kwun Tong,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 746 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Jan 2002
Number of employees
Current staff
Staff numbers
1,950
Lee & Man Chemical employees.
Industry
Commodity Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 12:36
End of day share price update: 2019/03/21 00:00
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.