[ET Net News Agency, 11 November 2019] Daiwa Research raised its target price for Lee &
Man Paper Manufacturing (L&M)(02314) to HK$5.5 from HK$4.4 and upgraded its rating to
"outperform" from "hold".
The research house believes the stock has finally reached the bottom. Although Daiwa
believes the industry is not entirely clear of its headwinds yet, it sees a near-term
trading opportunity in L&M, backed by (1) its laggard share price versus main competitor
Nine Dragons Paper (NDP)(02689), which saw its share price rebound by 34% in the past 3
months, (2) the potential partial US-China trade deal, which could unlock pent-up demand
for containerboard, and (3) traction with its ASEAN expansion.
Daiwa raised its 2019-21 EPS forecasts by 3-20% to factor in paper price and raw
material trends. (KL)