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Lee & Man Paper Manufacturing Limited (2314) Fair Value & Analysis

Basic Materials · HK · Market cap HK$12.6B

LM Lee & Man Paper Manufacturing Limited 2314 · HK
PriceHK$4.42
Fair ValueHK$6.55
Upside+48.1%
Quality54/100
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Weak Growth
Thin margins · 7.3% net margin
Low debt · generates free cash flow
5.54% dividend yield
Ranks above peers (13/15)
Narrow moat 33/100
Evidence: High Range HK$5.51 – HK$6.57 Share as image

Fair value as of: Aug 5, 2026

From 25 valuation models · updated 5 days ago

Fair value updated Aug 5, 2026, revised from HK$5.86 to HK$6.55 (+11.7%) since Jul 2, 2026. Share price +40.8% over the past month.

A solid business, screening 48% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$5.51). The market is more pessimistic than our downside scenario.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$6.33 HK$1.77 Fair Value HK$6.55 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$1.77 – HK$6.33 · fair‑value band HK$5.51 – HK$6.57 · the HK$4.42 price screens below the HK$6.55 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Lee & Man Paper Manufacturing Limited (2314) currently trades at HK$4.42, while our model-based Fair Value estimate is HK$6.55, implying the stock looks roughly 48.1% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Lee & Man Paper Manufacturing Limited generated revenue of HK$26.6B at a net margin of 7.3%. Revenue grew 6.8% year over year. It earns a return on equity of 6.6%. Net debt stands at HK$19.1B. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$5.51 (bear case) to HK$6.57 (bull case); at HK$4.42, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 102% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at 48%, 2314 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$1.50 HK$3.50 HK$6.32 80
Residual Income HK$5.64 HK$5.85 HK$6.06 76
Rev-Margin DCF HK$1.14 HK$3.41 HK$5.98 74
All 25 models by family
DCF Models
FCF DCF HK$1.41 HK$3.64 HK$6.97 38
5Y Revenue Exit HK$1.14 HK$3.39 HK$6.23 39
5Y EBITDA Exit HK$0.8300 HK$2.82 HK$5.09 41
5Y P/E Exit HK$1.97 HK$4.93 HK$7.99 38
10Y Revenue Exit HK$1.08 HK$3.15 HK$5.85 36
10Y EBITDA Exit HK$1.00 HK$2.75 HK$4.99 37
10Y P/E Exit HK$1.73 HK$4.21 HK$7.17 35
Earnings-Based
Graham-Dodd HK$3.07 HK$8.91 HK$11.76 54
Lynch FV HK$1.84 HK$2.64 HK$3.43 50
PEG = 1.0 HK$1.84 HK$2.64 HK$3.43 46
EPV HK$0.6700 HK$1.26 HK$1.77 59
Dividend Discount
Gordon GGM HK$1.02 HK$2.12 HK$3.36 70
DDM Multi-Stage HK$1.02 HK$1.63 HK$2.22 61
Multiples
P/E Multiple HK$5.76 HK$7.68 HK$9.60 63
P/S Multiple HK$5.76 HK$7.68 HK$9.60 58
P/B Multiple HK$5.76 HK$7.68 HK$9.60 55
EV/EBIT HK$1.81 HK$3.36 HK$4.91 53
EV/EBITDA HK$0.9400 HK$2.20 HK$3.46 54
EV/Revenue HK$1.19 HK$2.92 HK$4.64 43
Asset-Based
NCAV (Graham) HK$3.54 HK$4.75 HK$7.09 50
Growth DCF
Growth DCF HK$1.50 HK$3.50 HK$6.32 80
Rev-Margin DCF HK$1.14 HK$3.41 HK$5.98 74
Economic Profit
Residual Income HK$5.64 HK$5.85 HK$6.06 76
ROIC Compounder HK$0.6700 HK$1.26 HK$1.77 72
Growth Earnings
Growth-Adj P/E HK$4.76 HK$6.80 HK$8.84 68

Widest divergence: Growth Earnings (HK$6.80) versus Economic Profit (HK$1.26). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$26.6B
Revenue growth (YoY) +6.8%
Net margin 7.3%
Return on equity 6.6%
Free cash flow HK$1.6B FY2025
P/E ratio 6.5
More key figures
Operating margin 7.4%
EPS (TTM) HK$0.1900
Dividend yield 5.5%
EPS growth (YoY) +105%
Net debt HK$19.1B FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 77

Profitability 29
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 79
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Lee & Man Paper Manufacturing Limited, together with its subsidiaries, engages in the manufacture and trading of packaging paper, pulp, and tissue paper in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. It operates through the Packaging Paper, Tissue Paper, and Pulp segments.

Full company description

Lee & Man Paper Manufacturing Limited, together with its subsidiaries, engages in the manufacture and trading of packaging paper, pulp, and tissue paper in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. It operates through the Packaging Paper, Tissue Paper, and Pulp segments. The company offers packaging paper products, including kraft linerboard, test linerboard, coated duplex board, white-top linerboard, and high-strength corrugating medium; tissue paper products, comprising facial tissue, toilet paper, handkerchiefs, kitchen towels, napkins, and hand towels; pulp products, such as bleached hardwood, unbleached bamboo, and bleached bamboo kraft pulp; and coated duplex boards. It also provides after-sales services. The company was founded in 1994 and is headquartered in North Point, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lee & Man Paper Manufacturing Limited reported revenue of HK$26.6B in FY2025 versus HK$32.5B in FY2021, a compound −4.9%/yr. Reported net income was HK$1.9B in FY2025, compounding −12.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$26.6B
Latest YoY
+2.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.6%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.3%
Revenue −4.9%/yr
FY21 HK$32.5B
FY22 HK$29.2B
FY23 HK$24.9B
FY24 HK$26.0B
FY25 HK$26.6B
Net income −12.1%/yr
FY21 HK$3.3B
FY22 HK$1.3B
FY23 HK$1.1B
FY24 HK$1.4B
FY25 HK$1.9B
Character of growth · EPS growth decomposed (2014-2025) −4.5 % p.a.
Revenue per share +5.2 pp

of which total revenue +4.3 pp · buybacks/dilution +0.8 pp

EBIT margin −11.0 pp
Tax rate −0.2 pp
Residual (interest, one-offs) +1.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Lee & Man Paper Manufacturing Limited Fair Value". https://www.fairvalue-calculator.com/stock/2314

Peer Group

Paper & Paper Products · 111 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside +48% · Top 25%
Return on equity (TTM) 7% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 7% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 5.5% · Top 25%
Debt / equity 0.46× · Higher than median

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/E (TTM) 6.5× · Cheaper than 75% of peers
P/B 0.41× · Cheaper than median
P/S (TTM) 0.47× · Cheaper than median
P/FCF 1.0× · Cheaper than median
EV/EBITDA 11.7× · Pricier than median
PEG 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 97 · sector 20
FUTURE 34 · sector 9
PAST 27 · sector 12
HEALTH 77 · sector 91
DIVIDEND 100 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.58 R$3.89 -78%
UPM-Kymmene Oyj UPM €23.45 €15.47 -34%
Suzano S.A SUZB3 R$41.70 R$138.01 +231%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 103.00 kr 49.40 -52%
Shandong Sunpaper Co 002078 ¥14.13 ¥17.29 +22%
Holmen AB HOLMB kr 305.40 kr 217.72 -29%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.55 HK$8.73 +16%
Empresas CMPC S.A CMPC 1,078 CLP 1,269 CLP +18%
Xianhe Co 603733 ¥22.05 ¥24.32 +10%
Billerud AB BILL kr 68.70 kr 48.60 -29%

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Frequently asked questions

Is Lee & Man Paper Manufacturing Limited (2314) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$6.55 versus a price of HK$4.42, about +48% (undervalued).
What is the fair value of 2314?
Our model-based fair value for Lee & Man Paper Manufacturing Limited is HK$6.55 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$4.42.
What is the quality score of 2314?
Lee & Man Paper Manufacturing Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Lee & Man Paper Manufacturing Limited (2314)?
Lee & Man Paper Manufacturing Limited reported trailing-twelve-month revenue of about HK$26.6B (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 2314?
The net profit margin of Lee & Man Paper Manufacturing Limited is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does Lee & Man Paper Manufacturing Limited pay a dividend?
Lee & Man Paper Manufacturing Limited currently shows a dividend yield of about 5.54% relative to its recent price (as of Aug 5, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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