Group 1 - Citi upgraded the investment rating of Lee & Man Paper from "Sell" to "Buy" and raised the target price from HKD 2.4 to HKD 4.2, based on the judgment that the profitability cycle of the paper industry has bottomed out and is gradually improving [1] - The current price of Lee & Man Paper corresponds to a forecasted price-to-earnings ratio of 8 times and offers a dividend yield of 4.2%, indicating attractive valuation [1] - Although Lee & Man Paper's profit growth may not match that of its peer Nine Dragons Paper, a recent profit warning from Nine Dragons signals that the overall profitability of the paper industry is not expected to deteriorate further in the second half of 2025 compared to the first half [1] Group 2 - Bank of America also raised the target price for Lee & Man Paper to HKD 3.2 while maintaining a "Buy" rating [2]
大行评级｜花旗：造纸行业盈利周期已触底，将理文造纸评级升至“买入”