Lee & Man Paper Manufacturing (2314) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 21.3% year-over-year to HK$14.8 billion, driven by resilient exports and recovering domestic demand.

• Net profit increased 69.3% year-over-year to HK$1.4 billion, with earnings per share at HK31.97 cents.

• Interim dividend declared at HK11.2 cents per share, up from HK6.6 cents in the prior year.

• Improved profitability attributed to cost reductions, pulp and paper integration, and overseas capacity expansion.

Financial highlights

• Gross profit increased to HK$2.39 billion from HK$1.73 billion year-over-year.

• Operating profit before tax rose to HK$1.56 billion from HK$959 million year-over-year.

• Total comprehensive income reached HK$3.10 billion, up from HK$1.03 billion.

• Distribution and selling expenses were HK$374 million (2.5% of revenue); general and administrative expenses HK$695 million (4.7% of revenue).

• Finance costs decreased to HK$336 million from HK$389 million due to lower average interest rates.

Outlook and guidance

• Packaging paper expected to see steady growth, supported by government policies and resilient exports.

• Tissue paper market poised for growth, driven by rising consumption and demand for higher-quality products.

• New pulp mill in Guigang, Guangxi, to commence production in 2027, enhancing vertical integration and product diversification.

• Continued focus on technological upgrades, efficiency, and overseas market expansion.