Lee & Man Paper Manufacturing (2314.HK) ：More px hikes，Overseas Acceleration，Outperform，TP HK$9.50

机构：麦格理

评级：买入

目标价：9.50港元

Key points 

LM’s recent px hikes more than offset increased costs from 25% OCC tariff 

RPB a cheap alterative to US OCC. Coal-to-gas to push out small mills 

Reiterate OP – more price hikes/shutdowns soon, cheap valuation 

Price catalyst 

12-month price target: HK$9.50 based on a Price to Book methodology.

Catalyst: 1) price hikes in late Aug; 2) environmental checks from Aug 

Action and recommendation 

 Reiterate OP – We believe LM has oversold (-15% in past week) on the 25% US OCC tariff news. LM trading at just 5.5x 19E PE (LT ave. 8x), 22% ROE, 6% div yield. Mgmt share buyback could provide downside support.