SEHK:746

Stock Analysis Report

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Market Cap

HK$4.5b

Last Updated

2021/07/23 16:07 UTC

Data Sources

Company Financials

Executive Summary

Lee & Man Chemical Company Limited, an investment holding company, manufactures and sells chemical products in the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 746 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 746's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0%

746

0.9%

HK Chemicals

-1.2%

HK Market


1 Year Return

90.0%

746

66.4%

HK Chemicals

14.4%

HK Market

Return vs Industry: 746 exceeded the Hong Kong Chemicals industry which returned 66.4% over the past year.

Return vs Market: 746 exceeded the Hong Kong Market which returned 14.4% over the past year.


Shareholder returns

746IndustryMarket
7 Day0%0.9%-1.2%
30 Day12.7%17.5%-4.3%
90 Day30.9%29.0%-6.4%
1 Year102.7%90.0%73.0%66.4%18.5%14.4%
3 Year16.1%-7.4%15.9%-3.8%10.0%-2.2%
5 Year221.4%134.5%53.0%15.7%45.8%20.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lee & Man Chemical undervalued compared to its fair value and its price relative to the market?

4.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 746 (HK$5.51) is trading below our estimate of fair value (HK$5.78)

Significantly Below Fair Value: 746 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 746 is good value based on its PE Ratio (9x) compared to the Hong Kong Chemicals industry average (10.4x).

PE vs Market: 746 is good value based on its PE Ratio (9x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 746's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 746 is overvalued based on its PB Ratio (1x) compared to the HK Chemicals industry average (0.9x).


Future Growth

How is Lee & Man Chemical forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lee & Man Chemical has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Lee & Man Chemical performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 746 has high quality earnings.

Growing Profit Margin: 746's current net profit margins (16.2%) are lower than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: 746's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: 746's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 746 had negative earnings growth (-28.1%) over the past year, making it difficult to compare to the Chemicals industry average (1%).


Return on Equity

High ROE: 746's Return on Equity (11.3%) is considered low.


Financial Health

How is Lee & Man Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: 746's short term assets (HK$1.8B) exceed its short term liabilities (HK$1.2B).

Long Term Liabilities: 746's short term assets (HK$1.8B) exceed its long term liabilities (HK$1.2B).


Debt to Equity History and Analysis

Debt Level: 746's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: 746's debt to equity ratio has reduced from 79.2% to 34.5% over the past 5 years.

Debt Coverage: 746's debt is well covered by operating cash flow (57.4%).

Interest Coverage: 746's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

What is Lee & Man Chemical current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 746's dividend (4.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.97%).

High Dividend: 746's dividend (4.36%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).


Stability and Growth of Payments

Stable Dividend: 746's dividend payments have been volatile in the past 10 years.

Growing Dividend: 746's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), 746's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

11.1yrs

Average board tenure


CEO

Man Yan Lee (43 yo)

6.92yrs

Tenure

HK$36,975,000

Compensation

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 since August 16...


CEO Compensation Analysis

Compensation vs Market: Man Yan's total compensation ($USD4.76M) is above average for companies of similar size in the Hong Kong market ($USD300.36K).

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


Board Members

Experienced Board: 746's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Lee & Man Chemical Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lee & Man Chemical Company Limited
  • Ticker: 746
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: HK$4.546b
  • Shares outstanding: 825.00m
  • Website: https://www.leemanchemical.com

Number of Employees


Location

  • Lee & Man Chemical Company Limited
  • Liven House
  • 8th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Biography

Lee & Man Chemical Company Limited, an investment holding company, manufactures and sells chemical products in the People’s Republic of China. The company offers caustic soda, chloromethane products, polym...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 16:07
End of Day Share Price2021/07/23 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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