Lee & Man Paper Manufacturing (2314) H2 2024 earnings summary

Executive summary

• Revenue increased by 4.2% year-over-year to HK$26.0 billion, with net profit rising 17.6% to HK$1.4 billion.

• Earnings per share grew to HK30.56 cents from HK24.39 cents in the prior year.

• Final dividend proposed at HK4.5 cents per share, subject to shareholder approval.

• Gross profit margin improved to 12.0%, up two percentage points year-over-year.

Financial highlights

• Revenue: HK$25,995 million (2023: HK$24,937 million).

• Net profit: HK$1,358 million (2023: HK$1,154 million).

• Gross profit: HK$3,113 million (2023: HK$2,502 million).

• Earnings per share: HK30.56 cents (2023: HK24.39 cents).

• Proposed final dividend: HK4.5 cents per share (2023: HK6.1 cents).

• Total comprehensive income: HK$1,517 million (2023: HK$709 million).

Outlook and guidance

• Industry expected to benefit from PRC policies to boost domestic consumption and stabilize supply.

• Focus on technological upgrades, cost reduction, and product R&D to enhance competitiveness.

• Overseas expansion in Belt and Road countries to leverage cost advantages.

• Packaging paper remains core, with steady demand growth anticipated.

• Prudent business strategy and ongoing operational efficiency improvements planned.