Lee & Man Paper 2314

Lee & Man Paper 2314

Postby winston » Tue Jun 17, 2008 8:42 am

Lee & Man still betting on Vietnam
Stephanie Tong and Kathy Wang; Tuesday, June 17, 2008

Lee & Man Paper Manufacturing (2314) said its investment in Vietnam will not be hindered by the country's short-term inflation crisis.

The paper and pulp maker plans to spend HK$2 billion as initial investment to build a production plant.

"Although Vietnam is facing a financial crisis, the fundamentals of the country [are] not bad. Vietnam's inflation problem will not last long," said Lee & Man CEO Raymond Lee.

Vietnam-related stocks have fallen 20 percent or more in the last two weeks. Shares of GR Vietnam Holdings (0139) have dropped 20 percent while Luks Group (Vietnam Holdings) (0366) plunged 25 percent.

"Investors offloaded Vietnam-related stocks as they feared the depreciation of the Vietnamese dong will drag down asset values," a European investment bank analyst said. But he noted not all companies that have operations in Vietnam will be impacted much. "Shares of Stella International (1836) and Yue Yuen Industrial (0551) did not drop a lot last Friday as their footwear businesses in Vietnam are in US dollars not dong," he said.


Lee & Man shares yesterday jumped 7.63 percent to HK$14.10.
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Re: Lee & Man Paper 2314

Postby winston » Thu Jul 17, 2008 3:34 pm

Not vested.

Lee and Man net profit up 42.7pc

Lee and Man Paper Manufacturing (2314) said net profit in fiscal year March 31, 2008 jumped 42.7 percent to HK$1.44 billion thanks to increased production capacities.

Turnover jumped 74.3 percent to about HK$9 billion from the previous 12-month period.

Earnings per share rose by 26.3 percent to HK$1.2722. A final dividend of 10 HK cents was declared.

STAFF REPORTER
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Re: Lee & Man Paper 2314

Postby winston » Fri Jul 18, 2008 8:08 am

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Lee & Man on expansion roll
Lisa Yu
Friday, July 18, 2008

Lee & Man Paper Manufacturing (2314) posted a 42.7 percent increase in net profit to HK$1.44 billion for the year ended March 31, attributed largely to expansion of its production capacity and greater efficiency.

Earnings per share were HK$1.27 compared to HK$1.01 for the previous year. Revenues jumped 74.3 percent to nearly HK$9 billion, and the paper and packaging firm declared a final dividend of 10 HK cents a share.

"We want to have enough capital for development one and two years ahead," said head of finance Tony Hui. Capital expenditure budgeted for the next two years totals HK$3.2 billion.

The company put two container- board plants in China on line in May and June, adding 650,000 tonnes of capacity. It plans to add a further 420,000 tonnes in September through a plant in Vietnam. And next year it will open a pulp plant in Vietnam.

Lee and Man shares closed yesterday at HK$11.24, jumping nearly 8 percent
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Re: Lee & Man Paper 2314

Postby winston » Fri Sep 26, 2008 11:53 am

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STOCK ALERT - Hong Kong's Lee & Man Paper tumbles after broker cuts target price


HONG KONG (XFN-ASIA) - Lee & Man Paper Manufacturing Ltd shares were sharply lower after Credit Suisse cut its target price on the stock to 6.75 hkd from 9.85 hkd, citing bleaker earnings prospects.

At 11:25 am, the stock was down 0.47 hkd or 8.9 pct at 4.84.

Credit Suisse said in a brief note that Lee & Man may miss its profitability target of 500 hkd per tonne for this year as the company cut its average selling price by 6 pct in the third quarter from the second-quarter level.

The brokerage said high energy costs will also exert pressure on the company's profitability.
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Re: Lee & Man Paper 2314

Postby winston » Fri Feb 06, 2009 11:13 am

DJ MARKET TALK: UOB Ups Lee & Man To Buy, Prefers To Nine Dragons

0949 [Dow Jones] STOCK CALL: UOB KayHian upgrades Lee & Man Paper (2314.HK) to Buy from Hold as turning more positive on stock as China's latest PMI viewed positively, industry consolidation, credit-market improvement. Notes L&M, Nine Dragons (2689.HK) underperformed recent market rally; views as unjustified based on sector's PMI data.

"Despite the difficult macroeconomic environment, both ND and L&M are strong players, which are squeezing the competition and gaining market share;" expects both to receive China government support due to industry-leading positions. Says prefers L&M on low valuation based on P/B vs global paper manufacturers; shares trading at 6.4X FY09 P/E, 4.2X FY10 P/E.

ND trading at 7.0X FY09 P/E. Sets L&M target at HK$4.42 based on 5X FY10 P/E; ND fair price at HK$2.10. Suggests pair trade of L&M long, ND short as L&M has underperformed ND since November. L&M closed yesterday +1.3% at HK$3.83; ND +0.4% at HK$2.31.
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Re: Lee & Man Paper 2314

Postby winston » Wed Feb 18, 2009 12:06 pm

DJ MARKET TALK: CLSA Keeps Lee & Man At Buy, Target HK$6.20

1045 [Dow Jones] STOCK CALL: CLSA keeps Lee & Man (2314.HK) at Buy on view factory visit confirms margins have rebounded since mid-January and the dollar margin is now at HK$400/ton, topping FY10 assumption of HK$340/ton.

"Although demand from export clients remained sluggish, Lee & Man was able to retain full utilization thanks to market share gains. While we already anticipated FY09 would be a write-off due to falling ASPs and peak input costs, we further cut FY09 net profit by 33% on the back of a 2.2% cut in ASP."

Says, despite earnings cut in FY09, forecasts for FY10 remain intact. Keeps target at HK$6.20 based on 6X FY10 earnings. Stock off 2.5% at HK$3.92; HSI down 1.2%.
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Re: Lee & Man Paper 2314

Postby winston » Thu Feb 19, 2009 12:31 pm

DJ MARKET TALK: DBS Cuts Lee & Man Paper To Hold, Cuts Target 15%

1116 [Dow Jones] STOCK CALL: DBS downgrades Lee & Man Paper (2314.HK) to Hold from Buy, cuts target to HK$4.25 from HK$5 after lowering earnings forecast for fiscal FY09 ending March 31 by 27% to account for October-December margin squeeze from using high-cost raw material on lower-priced products.

Notes 2009 pricing uncertain as LMP's pricing power weakened, customers more price sensitive amid financial crisis. Cuts FY10, FY11 profit forecasts by 14%-15%. Adds, however, worst probably over for LMP, but growth prospects remain cloudy. Stock up 0.2% at HK$4.10; HSI down 0.9%.
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Re: Lee & Man Paper 2314

Postby winston » Thu May 21, 2009 9:55 am

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DJ MARKET TALK: Lee & Man Paper Down 3.6%; DBS Downgrades To Hold

1456 [Dow Jones] Lee & Man Paper (2314.HK) down 3.6% at HK$8.79, but off day's low of HK$8.35, which unlikely revisited, as investors holding view worst is over despite company tipping "significant decline" in FY09 net profit vs HK$1.44 billion year-earlier.

Stock off low also likely helped by news company swings to 4Q net profit after 3Q net loss. DBS Vickers lowers LMP's FY09 earnings forecast by 28% to HK$529 million, but says "this is already something in the past and has not changed our view of an improving market outlook."

Still, downgrades to Hold from Buy as stock rallied significantly over past few weeks, surpassed target price of HK$8.60, which unchanged, based on 10X FY10 P/E. Volume heavy at HK$8.79 million
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Re: Lee & Man Paper 2314

Postby winston » Wed Jun 17, 2009 11:46 am

Tripled the Target Price but keep at sell. Sleeping again ...

DJ MARKET TALK:Citi Raises Lee & Man Target To HK$7.30 Vs HK$1.80

1005 [Dow Jones] STOCK CALL: Citigroup raises Lee & Man Paper (2314.HK) target to HK$7.30 from HK$1.80 after switching valuation to 0.9X P/B vs previous distressed valuation of 0.2X after company succeeds in renegotiating covenants. But keeps at Sell on concerns of oversupply of containerboard, OCC/coal price hike. Forecasts FY10 EPS to be flat; forecasts FY09-11E EPS CAGR to contract 15%.

Notes company has no capacity expansion plan by FY11 as focusing on debt repayment. Expects FY10-11 net gearing to fall to 61%, 53% vs FY09's 82%. Forecasts FY09-10 interest expense to jump to HK$143 million, HK$329 million vs FY08's HK$86 million; but expects FY11 interest expense to fall to HK$288 million.

"We believe China's containerboard industry is in a downcycle due to weaker export activities and slowing domestic consumption, leading to average-selling-price pressure." Shares down 1.9% at HK$7.73
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Re: Lee & Man Paper 2314

Postby winston » Tue Jul 21, 2009 7:12 am

Not vested.

Shrinking demand crumples Lee & Man

Lee & Man Paper Manufacturing (2314) said net profit plunged by 79 percent to HK$302 million, for the year ended March 31, from HK$1.4 billion a year ago, due to a sharp market contraction and declining retail prices.

"We experienced an unexpected paper price drop of HK$1,200 per tonne and lost as much as HK$900 million in the third quarter last year," chief executive Raymond Lee Man-chun said.

But Lee said the worst is over for L&M and he is optimistic about the future. He said the priority for the firm now is to reduce debts to HK$5.9 billion by 2010, and to HK$4.9 billion by 2011 from HK$6.9 billion as at March 30, when the packaging maker's gearing ratio stood at 81 percent.

Revenue during the period jumped 7.3 percent year on year to HK$9.6 billion.

Earnings per share was down 79 percent to 26.56 Hong Kong cents per share. No final dividend was declared.

NATALLIE CAI, The Standard HK
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