[ET Net News Agency, 6 March 2020] Huatai Research lifted its target price for Lee &
Man Paper (LMP)(02314) to HK$3.5 from HK$3.4 and maintained its "sell" rating.
The research house said LMP's 2019 results were above Huatai's estimate due to a
stronger rebound in containerboard price in 4Q 2019, and better control over expenses.
Huatai raised its net profit for 2020/21 by 25%/16%, to factor in higher net dollar
margins after the containerboard price rebound last year, partly offset by weaker sales
volume estimates due to delayed demand recovery and more severe production disruption.
Huatai believes the containerboard industry has yet to bottom out and the shrinking
quota for wastepaper imports will impair the leading producers' cost advantage over small
ones. (KL)