Lee & Man Paper (02314) shares saw a significant increase of over 7% during the morning session. At the time of writing, the stock was up 6.88% to HK$4.04, with a trading turnover of HK$1.01 billion.

The company recently announced that it anticipates achieving an interim profit attributable to the company in the range of approximately HK$1.33 billion to HK$1.39 billion for the six months ending June 30, 2026. This represents a substantial increase of 64% to 71% compared to the HK$811 million profit recorded in the same period last year. The growth in profit is primarily attributed to an improvement in the group's profit margins.

Citi stated that the company's interim performance was stronger than anticipated. Consequently, the bank has raised its profit forecasts for the years 2026 to 2028 by 22% to 28%. It has also increased its target price for the stock from HK$4.30 to HK$4.80, while maintaining a "Buy" rating. Citi expects a robust profit recovery of about 33% for Lee & Man Paper this year, with an anticipated compound annual growth rate of 14% for profits from 2026 through 2028.