Lee & Man Chemical Co. Ltd. (0746) AI Stock Analysis

• Market Cap: HK$3.05B
• Dividend Yield: 63.65%
• Average Volume (3M): 192.60K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.47
• Revenue Growth: -2.46%
• EPS Growth: 20.39%
• Country: HK
• Employees: 1,930
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals
• EPS (TTM): 0.29
• Shares Outstanding: 825,000,000
• 10 Day Avg. Volume: 297,400
• 30 Day Avg. Volume: 192,600
• PEG Ratio: -0.45
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$4.00 ▲(8.11%Upside)

Lee & Man Chemical Co. Ltd. demonstrates strong financial stability and attractive valuation with a low P/E ratio and high dividend yield as key strengths. Technical indicators suggest a neutral market position, reflecting balanced investor sentiment. However, revenue and cash flow challenges need addressing for sustainable growth.

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

Company Description

Lee & Man Chemical Company Limited, an investment holding company, manufactures and sells chemical products in the People's Republic of China. It operates through two segments, Chemical and Property. The company offers caustic soda, chloromethane products, polymers, hydrogen peroxide, fluorochemical products, polytetrafluoroethylene, liquified chlorine, and other products, as well as provides styrene acrylic latex surface sizing agent and lithium-ion battery additives. In addition, it is involved in the development, sale, and rental of properties. The company was formerly known as Lee & Man Holding Limited and changed its name to Lee & Man Chemical Company Limited in June 2011. Lee & Man Chemical Company Limited was founded in 1976 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Lee & Man Chemical Co. Ltd. generates revenue primarily through the sale of its chemical products to a diverse range of industries. The company's key revenue streams include the production and distribution of sodium hydroxide and hydrogen peroxide, which are widely used in paper manufacturing and other industries. Additionally, the company benefits from strategic partnerships and long-term contracts with industrial clients, ensuring a stable demand for its products. Factors such as efficient production processes, cost management, and market expansion strategies also contribute significantly to the company's earnings.

Lee & Man Chemical Co. Ltd. Financial Statement Overview

Summary

Lee & Man Chemical Co. Ltd. presents a balanced financial profile with strong operational efficiency and a solid balance sheet. Despite declining revenue and net income, it maintains healthy margins. Cash flow variability is a concern, but the overall financials suggest stability and potential for growth if revenue challenges are addressed.

Income Statement

Lee & Man Chemical Co. Ltd. has shown a mixed performance in recent years. The gross profit margin has remained relatively strong, indicating effective cost management. However, there has been a decline in both revenue and net income in recent periods, with a notable revenue drop from 2022 to 2023. Despite this, the company maintains a healthy EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The company's balance sheet reflects strong equity levels and a conservative debt-to-equity ratio, suggesting financial stability and lower leverage risk. The equity ratio is robust, indicating a solid capital structure with significant asset backing. Overall, Lee & Man Chemical Co. Ltd. appears financially sound in terms of its balance sheet metrics.

Cash Flow

The cash flow statement highlights a strong operating cash flow, which is a positive indicator of the company's ability to generate cash from its core operations. However, free cash flow has shown variability, which could impact investment flexibility. The operating cash flow to net income ratio is favorable, but attention to free cash flow growth is needed to sustain long-term financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.95B	4.05B	5.87B	5.19B	3.10B
	Gross Profit
1.16B	1.06B	2.12B	2.34B	1.13B
	EBIT
588.43M	473.29M	1.39B	1.58B	553.21M
	EBITDA
693.50M	597.02M	1.51B	1.72B	743.82M
	Net Income Common Stockholders
482.28M	400.67M	1.16B	1.29B	502.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
290.66M	263.67M	421.70M	324.88M	422.68M
	Total Assets
7.20B	7.03B	7.08B	7.62B	6.78B
	Total Debt
653.06M	678.91M	746.46M	1.04B	1.54B
	Net Debt
430.28M	415.25M	324.76M	712.39M	1.12B
	Total Liabilities
1.26B	1.23B	1.44B	2.04B	2.34B
	Stockholders Equity
5.94B	5.80B	5.63B	5.57B	4.44B
Cash Flow		Free Cash Flow
282.02M	142.21M	955.86M	762.12M	348.55M
	Operating Cash Flow
1.06B	756.45M	1.57B	1.43B	827.06M
	Investing Cash Flow
-826.47M	-613.69M	-610.62M	-676.51M	-476.20M
	Financing Cash Flow
-265.43M	-298.37M	-840.28M	-870.29M	-195.50M

Lee & Man Chemical Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0746, the sentiment is Positive. The current price of 3.7 is above the 20-day moving average (MA) of 3.64, above the 50-day MA of 3.53, and above the 200-day MA of 3.61, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0746.

Lee & Man Chemical Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$3.05B	6.33	8.22%	63.65%	-2.46%	20.39%
Sector *	44 Neutral	C$973.16M	-6.67	-13.31%	2.72%	17.60%	-31.88%
CKISF		$15.76B	15.96	6.62%	5.03%	―	―
CRGGF		$5.97B	12.16	9.94%	0.81%	―	―
SZHIF		$10.08B	11.55	18.17%	4.94%	―	―
1BQ			―		―	―	―

Lee & Man Chemical Co. Ltd. Corporate Events

Lee & Man Chemical Co. Ltd. Reports Successful AGM with All Resolutions Passed

Lee & Man Chemical Co. Ltd. announced the successful passing of all ordinary resolutions during their Annual General Meeting held on May 8, 2025. The resolutions included the adoption of financial statements, declaration of dividends, re-election of directors, and authorization of director remuneration. The meeting saw full participation from shareholders, with no abstentions, and all resolutions were passed with overwhelming support, indicating strong shareholder confidence in the company’s governance and strategic direction.

Lee & Man Chemical Co. Ltd. Announces AGM and Strategic Resolutions

Lee & Man Chemical Co. Ltd. has announced its Annual General Meeting (AGM) scheduled for May 8, 2025, in Hong Kong. The AGM will address ordinary business matters, including the adoption of financial statements, declaration of dividends, re-election of directors, and the appointment of auditors. Additionally, the company seeks approval for the board to issue additional shares, with a cap of 20% of the current issued shares, reflecting strategic moves to enhance shareholder value and operational flexibility.