Lee & Man Paper Manufacturing (2314) saw its first-half net profit surge 69.3 percent year-on-year to HK$1.4 billion and declared an interim dividend of 11.2 HK cents per share, up nearly 70 percent from a year ago.
The papermaker's revenue for the six months grew 21.3 percent to HK$14.8 billion, improving its net profit margin to 9.3 percent from 6.6 percent last year.
The company attributed this robust performance to the Chinese economy maintaining steady growth, resilient exports, and a gradual recovery in consumer demand, which supported demand for paper used in packaging, logistics, and consumer goods.
It noted that pulp prices remained generally low due to a relatively ample global pulp supply, while the industry also benefited from recovering demand driving up prices of certain paper categories and the phasing out of some obsolete production capacity.
The company expects a moderate recovery to continue in the second half, supported by consumption-boosting policies and e-commerce logistics. However, it cautioned that the release of new capacity and fluctuations in raw material prices will continue to pose challenges.
Meanwhile, It's sister company Lee & Man Chemical (0746) saw its net profit rise 7 percent to HK$349 million, driven by rising sales volume and selling prices of advanced material chemical products. It proposed an interim dividend of 21 HK cents per share, up 7.7 percent from a year ago, as its revenue increased 12.2 percent to HK$2,168 million and its gross profit margin broadly stayed at 35.7 percent.
