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Lee & Man Chemical Co. Ltd. (HK:0746)
:0746
Hong Kong Market
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Lee & Man Chemical Co. Ltd. (0746) AI Stock Analysis

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HK:0746

Lee & Man Chemical Co. Ltd.

(0746)

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Outperform 74 (OpenAI - Gpt-5.6Sol)
Rating:74Outperform
Price Target:
HK$5.00
▼(-4.40% Downside)
Action:Upgraded
Date:08/06/26
Overall score is driven primarily by solid financial performance (strong 2025 recovery, low leverage, and consistently positive free cash flow) and supportive valuation (low P/E and high dividend yield). Technicals are constructive but somewhat overheated (RSI/Stoch elevated), tempering the score due to higher near-term volatility or pullback risk.
Positive Factors
Revenue and margin recovery
The strong 2025 recovery shows renewed demand and improved profitability, with both revenue and margins moving higher year over year. If sustained, this combination can rebuild earnings power, support internal funding, and strengthen the company’s position across the chlor-alkali cycle.
Negative Factors
Cyclical earnings profile
The decline from the 2021–2022 peak demonstrates that earnings remain sensitive to the chlor-alkali cycle and prevailing market conditions. Even after the 2025 rebound, the business may experience material swings in revenue and profitability, making current improvements less dependable across several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin recovery
The strong 2025 recovery shows renewed demand and improved profitability, with both revenue and margins moving higher year over year. If sustained, this combination can rebuild earnings power, support internal funding, and strengthen the company’s position across the chlor-alkali cycle.
Read all positive factors

Lee & Man Chemical Co. Ltd. (0746) vs. iShares MSCI Hong Kong ETF (EWH)

Lee & Man Chemical Co. Ltd. Business Overview & Revenue Model

Company Description
Operating as an investment holding entity, Lee & Man Chemical Company Limited is primarily engaged in the production and distribution of various chemical goods across the People's Republic of China. Its business operations are segmented into two c...
How the Company Makes Money
The company primarily makes money by manufacturing chemical products and selling them to industrial customers, with revenue largely derived from (1) sales of chlor-alkali products (notably caustic soda and other related outputs) and (2) sales of o...

Lee & Man Chemical Co. Ltd. Financial Statement Overview

Summary
Financials are solid with a clear 2025 rebound: revenue grew +28.3% YoY and margins improved (gross ~34.5% vs ~29.5%; net ~14.9% vs ~12.2%). Balance sheet is conservatively financed with low leverage (debt-to-equity ~0.11–0.19) and equity growth. Cash flow remains positive with strong 2025 free-cash-flow growth (+62.9% YoY), but cash conversion is uneven (free cash flow covered less than half of net income in 2025) and results remain cyclical versus the 2021–2022 peak.
Income Statement
68
Positive
Balance Sheet
80
Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.99B3.75B3.95B4.05B5.87B5.19B
Gross Profit1.37B1.29B1.16B1.06B2.12B2.34B
EBITDA1.03B753.48M693.50M597.02M1.51B1.72B
Net Income581.12M558.26M482.28M400.67M1.16B1.29B
Balance Sheet
Total Assets8.51B7.72B7.20B7.03B7.08B7.62B
Cash, Cash Equivalents and Short-Term Investments180.90M162.83M290.66M263.67M421.70M324.88M
Total Debt970.71M787.17M653.06M678.91M746.46M1.04B
Total Liabilities1.59B1.39B1.26B1.23B1.44B2.04B
Stockholders Equity6.91B6.33B5.94B5.80B5.63B5.57B
Cash Flow
Free Cash Flow152.12M478.88M282.02M142.21M955.86M762.12M
Operating Cash Flow747.34M991.32M1.06B756.45M1.57B1.43B
Investing Cash Flow-449.04M-443.53M-826.47M-613.69M-610.62M-636.18M
Financing Cash Flow-243.68M-611.88M-265.43M-298.37M-840.28M-919.87M

Lee & Man Chemical Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.23
Price Trends
50DMA
4.44
Negative
100DMA
4.44
Negative
200DMA
4.82
Negative
Market Momentum
MACD
-0.04
Positive
RSI
44.02
Neutral
STOCH
17.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0746, the sentiment is Negative. The current price of 5.23 is above the 20-day moving average (MA) of 4.51, above the 50-day MA of 4.44, and above the 200-day MA of 4.82, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0746.

Lee & Man Chemical Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$3.63B6.298.77%7.95%2.52%2.16%
72
Outperform
HK$1.04B4.959.19%2.38%3.26%181.56%
70
Outperform
HK$21.56B10.1112.67%2.30%7.79%48.48%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
HK$4.80B5.3613.63%1.22%0.90%16.54%
51
Neutral
HK$922.34M15.772.08%2.84%16.60%-12.13%
42
Neutral
HK$323.29M-0.36214.56%1.56%-21.85%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0746
Lee & Man Chemical Co. Ltd.
4.30
-0.64
-12.95%
HK:0827
Ko Yo Chemical (Group) Limited
0.05
0.01
45.16%
HK:0609
Tiande Chemical Holdings Limited
1.05
-0.33
-24.02%
HK:1702
Dongguang Chemical Ltd.
1.80
0.62
51.90%
HK:0189
Dongyue Group Limited
13.11
0.62
4.95%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
4.04
2.32
135.00%

Lee & Man Chemical Co. Ltd. Corporate Events

Lee & Man Chemical Sets 2026 Deadline for Unclaimed Dividends
Aug 5, 2026
Lee Man Chemical has announced that unclaimed dividends from its 2019 final dividend and 2020 interim dividend will be forfeited and revert to the company if they remain unclaimed by 5 September 2026, in line with its Articles of Association. Sha...
Lee & Man Chemical lifts interim dividend as profit rises on advanced materials demand
Aug 3, 2026
Lee Man Chemical reported a 12.2% year-on-year increase in revenue to HK$2,168 million for the six months ended 30 June 2026, with profit up 7.0% to HK$349 million, supported by stronger volumes and higher selling prices in advanced material chem...
Lee & Man Chemical Declares Interim Cash Dividend for 2026
Aug 3, 2026
Lee Man Chemical Company Limited, listed in Hong Kong under stock code 00746, operates in the chemicals and industrial materials sector and is overseen by a board that includes executive, non-executive and independent non-executive directors. Its...
Lee & Man Chemical Sets August Board Meeting to Approve Interim Results
Jul 23, 2026
Lee Man Chemical Company Limited has scheduled a board meeting on 3 August 2026 to review and approve the interim results for the six months ended 30 June 2026 for the company and its subsidiaries. The board will also consider whether to recommen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026