Lee & Man Paper Manufacturing (02314.HK) 1H2022 results in line with consensus November 15, 2022 42

PSR Recommendation: BUY Status: Initiation
Target Price: HKD2.70

Company Profile
Established in 1994, Lee & Man Paper Manufacturing (“LMP”) was listed on the Main Board
of the Hong Kong Stock Exchange on September 2003. LMP manufactures linerboards of
various grades and corrugating medium of different specifications used for different
industrial packaging purposes. Over the years, in addition to boosting production scale, LMP
has been relentless in pushing to form a vertically integrated operation that covers pulp
making and recovered paper collection so as to assure it has stable raw material supply.
LMP currently has 5 paper mills, 3 tissue mills and 1 pulp factory in China. They are
distributed in Zhongtang Town and Hongmei Town of Dongguan City, Guangdong Province,
Changshu City, Chongqing Yongchuan District, Ruichang City, Jiangxi Province, etc. In
addition, LMP also has production bases in Vietnam, Malaysia and Indonesia. As of the end
of December 2021, the Company had an annual production capacity of over 8.695 million
tons(~6.88 million tons of paper, ~180,000 tons of pulp, ~640,000 tons of pulp board and
~995,000 tons of tissue paper).
1H2022 results in line with consensus
LMP total revenue for the six months ended 30 June 2022 (1H2022) increased by 0.6% YoY
to HK$15.3bn. Net profit attributable to shareholders decreased by 58.8% to HK$797mn,
which is consistent with the results announced in July. The EPS was HK18.46 cents (1H2021:
HK44.54 cents). Interim dividend of HK6.50 cents per share (1H2021: HK15 cents), decreased
by 56.7% YoY.

About the author

Profile photo of Eric Li

Eric Li
Analyst
Research

李浩然先生(Eric Li) 高級分析師 現任現為輝立証券持牌高級分析師,曾任職股票基金、家族辦公室及證券公司等,擁有多年的證券研究部門從業及投資經驗,並先後於香港最暢銷的財經媒體撰寫投資專欄。畢業於香港理工大學電子計算系。 Eric is currently a licensed research analyst at Phillip Securities. Prior to joining Phillip Securities, he has years of equity research and investment experiences in asset management company, family office and securities company. Meanwhile, he has written investment columns in Hong Kong`s best-selling financial media for years. He holds Bachelor of Arts in Computing from The Hong Kong Polytechnic University.

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