[ET Net News Agency, 19 January 2018] Daiwa Research lowered its target price for Lee &
Man Paper Manufacturing (L&M)(02314) to HK$10 from HK$10.2, and downgraded its rating to
"hold" from "outperform".
With the stock having outperformed Nine Dragons Paper (02689) by almost 10pp in the past
2 months, the research house said its tactical preference for L&M during periods of
rapidly declining OCC prices has fully played out.
While it is still positive on the containerboard industry in 2018, L&M's tissue paper
business is a growing concern, Daiwa noted. Given the strong 45% containerboard price
rally in 2H 2017, Daiwa forecast L&M to post 77% YoY growth in adjusted earnings growth
for full-year 2017, implying 2H17 earnings growth of over 80% YoY.
For 2018, it estimated L&M will earn a per-tonne profit of HK$691 per tonne, its second
highest year on record. It raised its 2017 EPS by 11% to reflect stronger-than-expected
margins in 2H 2017, but trimmed its 2018-19 EPS by 0-4% on softer containerboard prices
and weaker tissue profitability. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02314 LEE & MAN PAPER
Nominal 
2.330 +0.030 (+1.304%) Others
19/01/2018 10:22
[I-bank focus]Daiwa lowers Lee & Man Paper (02314) to HK$10
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |