Citi: Raises Lee & Man Paper's target price to HK$2.4, reiterates "Sell" rating.

Citigroup released a research report stating that Lee & Man Paper's performance in the first half of the year was slightly better than expected, but revenue was slightly lower than expected. Citigroup has raised its earnings forecast for the company from 2025 to 2027 by 14% to 15%, and based on an expected price-to-earnings ratio of 6 in 2025, it has raised the target price from 2 Hong Kong dollars to 2.4 Hong Kong dollars. The stock has risen by approximately 30% since early July, reflecting strong performance in the first half of the year and recent measures against industry competition. However, Citigroup believes that weak consumption is still a key factor limiting profit margin recovery. Due to the recent technical rebound, Citigroup reiterated its "sell" rating on the stock.