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

HK:0746

Lee & Man Chemical Co. Ltd.

(HKEX:0746)

Select Model
Rating:76.6Outperform
Price Target:HKD 5.00â–²(14.16% Upside)
Action:reiterated
Date:08/19/26

The overall score reflects strong financial resilience and a conservative balance sheet as the primary strength, supported by attractive valuation with a low P/E and high dividend yield, while a weak technical setup with the price trading below key moving averages and subdued momentum limits the rating and highlights near-term market risk.

Positive Factors
Revenue and Margin ReboundThe strong 2025 recovery shows that the business can regain pricing or cost-control benefits after a downturn. Higher revenue and margins improve operating earnings, support reinvestment, and provide a stronger base for performance over the next several quarters.
Negative Factors
Cyclical Earnings ProfileThe decline from the 2021–2022 peak demonstrates meaningful sensitivity to chemical-cycle conditions. Even after the 2025 rebound, earnings power has not fully recovered, so future results may remain vulnerable to weaker industry demand, pricing, or utilization.

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

-20%-10%0%10%20%30%HK:0746-5.34%EWH+8.19%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 3.61B
Dividend Yield
7.99%
Average Volume (3M)
276.31K
Price to Earnings (P/E)
6.3
Beta (1Y)
0.67
Revenue Growth
2.52%
EPS Growth
2.16%
Country
Hong Kong
Employees
1,864
Sector
Basic Materials
Sector Strength
61
Industry
Chemicals

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 core...

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 othe...

Lee & Man Chemical Co. Ltd. Financial Statement Overview

Summary

Solid financial profile with structurally high margins, a very robust and deleveraged balance sheet, and consistently positive operating and free cash flow, tempered by notable revenue and cash flow cyclicality and lower returns on equity versus the 2021–2022 peak period.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

80Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.99B3.75B3.95B4.05B5.87B5.19B
Gross Profit1.37B1.29B1.16B1.06B2.12B2.34B
EBITDA826.48M759.87M693.50M597.02M1.51B1.72B
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 SentimentPositive
Last Price4.38

Price Trends

50DMA4.40Negative
100DMA4.40Negative
200DMA4.68Negative

Market Momentum

MACD-0.03Positive
RSI50.59Neutral
STOCH51.68Neutral

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 4.38 is above the 20-day moving average (MA) of 4.38, below the 50-day MA of 4.40, and below the 200-day MA of 4.68, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 51.68 is Neutral, 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:0746 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0746HK:074677OutperformHKD 3.56B6.268.77%7.99%2.52%2.16%
HK:0189HK:018973OutperformHKD 16.00B7.6312.67%3.03%7.79%48.48%
HK:1702HK:170270OutperformHKD 1.06B4.989.19%2.35%3.26%181.56%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
HK:2198HK:219859NeutralHKD 4.12B4.5213.63%4.32%0.90%16.54%
HK:0609HK:060953NeutralHKD 860.85M14.612.08%3.05%16.60%-12.13%
HK:0827HK:082739UnderperformHKD 217.87M-0.25214.56%―1.56%-21.85%

* Basic Materials Sector Average

Performance Comparison

0%50%100%150%HK:0746HK:0827HK:0609HK:1702HK:0189HK:2198Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:0746 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0746Lee & Man Chemical Co. Ltd.4.38-0.23-4.95%
HK:0827Ko Yo Chemical (Group) Limited0.030.0118.52%
HK:0609Tiande Chemical Holdings Limited0.98-0.37-27.57%
HK:1702Dongguang Chemical Ltd.1.70-0.21-10.99%
HK:0189Dongyue Group Limited9.890.424.45%
HK:2198China Sanjiang Fine Chemicals Co., Ltd.3.471.1952.06%

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. S...

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 ch...

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. I...

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