Citigroup: Upgrading Lee & Man Paper Manufacturing (02314.HK) target price to HKD 5.5, included in the preferred small and mid-cap stocks list in China.

According to the Zhitong Finance APP, Citi has released a research report stating that it is raising the target price for Lee & Man Paper Manufacturing (02314.HK) from HKD 4.8 to HKD 5.5, based on a price-to-earnings ratio of 9 times the 2026 earnings, which aligns with the historical average level. This adjustment reflects a more optimistic outlook for the profitability of tissue paper and is supported by a projected compound annual growth rate (CAGR) of 15% in earnings per share over the three years ending in 2028. The report reiterates a "Buy" rating for Lee & Man Paper Manufacturing, maintains a "Neutral" rating for Nine Dragons Paper (02689.HK), and includes Lee & Man Paper in the preferred list of small and medium-sized stocks in China due to the improved profitability outlook for tissue paper.