Lee & Man Paper Manufacturing Ltd. (2314) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Q P Group Holdings Ltd.

Lee & Man Paper Manufacturing Ltd.

China Sunshine Paper Holdings Co. Ltd.

Vanov Holdings Co., Ltd.

China Huajun Group Ltd.

C&D Newin Paper & Pulp Corp. Ltd.

Integrated Waste Solutions Group Holdings Ltd.

Champion Alliance International Holdings Ltd.

Why is Lee & Man Paper Manufacturing Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 0.59% and Operating profit at -13.70% over the last 5 years
The company is Net-Debt Free

With ROE of 6.35%, it has a Expensive valuation with a 0.41 Price to Book Value

Over the past year, while the stock has generated a return of 19.86%, its profits have risen by 51.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 5.5

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lee & Man Paper Manufacturing Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lee & Man Paper Manufacturing Ltd.

-100.0%

1.08

37.92%

Hang Seng Hong Kong

-5.07%

-0.26

18.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.59%

EBIT Growth (5y)

-13.70%

EBIT to Interest (avg)

10.83

Debt to EBITDA (avg)

11.56

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

0.57

Tax Ratio

12.43%

Dividend Payout Ratio

35.18%

Pledged Shares

Institutional Holding

ROCE (avg)

3.47%

ROE (avg)

7.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.41

EV to EBIT

15.04

EV to EBITDA

13.38

EV to Capital Employed

0.63

EV to Sales

1.18

PEG Ratio

0.12

Dividend Yield

5.54%

ROCE (Latest)

4.22%

ROE (Latest)

6.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

ROCE(HY)

Highest at 8.08%

DEBT-EQUITY RATIO (HY)

Lowest at 60.39 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -25.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.55 times

DIVIDEND PER SHARE(HY)

Highest at HKD 4.45

NET SALES(Q)

Highest at HKD 14,841.95 MM

OPERATING PROFIT(Q)

Highest at HKD 1,575.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.61 %

PRE-TAX PROFIT(Q)

Highest at HKD 1,548.33 MM

NET PROFIT(Q)

Highest at HKD 1,372.77 MM

EPS(Q)

Highest at HKD 0.32

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.45 times

Here's what is working for Lee & Man Paper Manufacturing Ltd.

Debt-Equity Ratio

Lowest at 60.39 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at HKD 14,841.95 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 1,575.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 10.61 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 1,548.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

At HKD 1,548.33 MM has Grown at 62.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 1,372.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Net Profit

At HKD 1,372.77 MM has Grown at 69.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Highest at 5.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at HKD 4.45

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Raw Material Cost

Fallen by -25.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Lee & Man Paper Manufacturing Ltd.

Debtors Turnover Ratio

Lowest at 4.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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