[ET Net News Agency, 14 August 2019] Daiwa Research lowered its target price for Lee &
Man Paper Manufacturing (L&M)(02314) to HK$4.4 from HK$7 and maintained its "hold" rating.
The research house said the biggest surprise of L&M's 1H results was the halving of the
profitability of its tissue paper business mainly due to competition, vindicating Daiwa's
cautious view of L&M's above-industry margins.
Given the renewed trade war concerns and overall weakness of the containerboard
industry, Daiwa remains on the sidelines until clear upside catalysts emerge. It cut its
2019-21 EPS forecasts by 23-30% to factor in the latest paper price and raw material
trends. (KL)