Citigroup's research report stated that as of the end of June 2024 fiscal year, Lee & Man Paper (02689.HK) has turned losses into profits, recording a net profit of 818 million yuan, a significant improvement from a loss of 2.399 billion yuan in the 2023 fiscal year. However, it is still expected that Lee & Man Paper's profitability will remain low at the beginning of the 2025 fiscal year, mainly due to industry oversupply and continued weak end demand.

The bank has lowered its profit forecast for Lee & Man Paper in the 2025 fiscal year by 9% to 1.181 billion yuan, averaging about 98 million yuan per month, slightly higher than the 86 million yuan in the second half of 2024. Taking into account the recovery in consumption under stimulus policies, especially the significant growth in the household appliances industry, Citigroup has slightly raised its profit forecast for Lee & Man Paper from 2025 to 2026 by 6%, raising the target price to 4.3 yuan, corresponding to a forecast market-to-book ratio of about 0.4 times in 2025 fiscal year. It maintains a 'neutral' rating and maintains a 'sell' rating for Lee & Man Paper (02314.HK).