Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Lee & Man Paper Manufacturing / Equity Bottom-Up

<ul>
<li>2025 results were better than expected; net profit jumped 50% YoY, and dividend doubled. The company's investment in South East Asia also help them to secure feedstock. </li>
<li>
<a href="https://www.smartkarma.com/entities/lee-man-paper-manufacturing" target="_blank" data-smartkarma-citation="entities:529:1" rel="noopener">Lee &amp; Man Paper Manufacturing (2314 HK)</a> reportedly used AI to streamline its production  as well as upgrade its power stations, which resulted into higher margins.</li>
<li>At 0.5x PBR, combined with the intent to increase profitability through higher production efficiency (AI), <a href="https://www.smartkarma.com/entities/lee-man-paper-manufacturing" target="_blank" data-smartkarma-citation="entities:529:1" rel="noopener">Lee &amp; Man Paper Manufacturing (2314 HK)</a> is a steal. </li>
</ul>


2025 results were better than expected; net profit jumped 50% YoY, and dividend doubled. The company's investment in South East Asia also help them to secure feedstock. 

Lee &amp; Man Paper Manufacturing (2314 HK) reportedly used AI to streamline its production  as well as upgrade its power stations, which resulted into higher margins.
At 0.5x PBR, combined with the intent to increase profitability through higher production efficiency (AI), Lee &amp; Man Paper Manufacturing (2314 HK) is a steal. 


Lee & Man (2314): Higher Dividend, AI + ASEAN Launch

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong Alpha portfolio gained 16.26% in January resulting in a 6.2% outperformance to its benchmark.  The portfolio has outperformed HK indexes by 48% to 63% since inception on 10/1/24.</li>
<li>Hong Kong Alpha has generated 50% of its return from alpha and has a Sharpe ratio of 1.79 since inception.  The portfolio's annualized mean excess return is 28%.</li>
<li>At the end of January, we reduced positions in the materials, communications, and conglomerate sectors and added positions in the food, energy, and manufacturing sectors.</li>
</ul>


Hong Kong Alpha portfolio gained 16.26% in January resulting in a 6.2% outperformance to its benchmark.  The portfolio has outperformed HK indexes by 48% to 63% since inception on 10/1/24.
Hong Kong Alpha has generated 50% of its return from alpha and has a Sharpe ratio of 1.79 since inception.  The portfolio's annualized mean excess return is 28%.
At the end of January, we reduced positions in the materials, communications, and conglomerate sectors and added positions in the food, energy, and manufacturing sectors.


HONG KONG ALPHA PORTFOLIO: (January 2026)

<ul>
<li>Valuation is still cheap and recovery is in place - as share price has started to move last year.</li>
<li>The big 3 including <a href="https://www.smartkarma.com/entities/lee-man-paper-manufacturing" target="_blank" data-smartkarma-citation="entities:529:1" rel="noopener">Lee &amp; Man Paper Manufacturing (2314 HK)</a> , <a href="https://www.smartkarma.com/entities/nine-dragons-paper-holdings" target="_blank" data-smartkarma-citation="entities:528:1" rel="noopener">Nine Dragons Paper (2689 HK)</a> have agreed to reduce capacity of 0.6% that typically has 10x multiplier effect. </li>
<li>It is a sector that helps to reduce emissions by recycling used paper. </li>
</ul>


Valuation is still cheap and recovery is in place - as share price has started to move last year.
The big 3 including Lee &amp; Man Paper Manufacturing (2314 HK) , Nine Dragons Paper (2689 HK) have agreed to reduce capacity of 0.6% that typically has 10x multiplier effect. 
It is a sector that helps to reduce emissions by recycling used paper. 


<ul>
<li>The Hong Kong Alpha portfolio's March performance was -11.25%, compared with -7.75% for the benchmark index.  The Hang Seng Index lost 6.92% for the month.</li>
<li>Performance was hurt by its exposure to the oil equipment and fertilizer sectors, which normally benefit from higher energy prices. China imposed price and export restrictions in the energy sector.</li>
<li>At the end of March, we positioned the portfolio to better cope with the difficulties in China's economy and in the global market due to persistently high energy prices.</li>
</ul>


The Hong Kong Alpha portfolio's March performance was -11.25%, compared with -7.75% for the benchmark index.  The Hang Seng Index lost 6.92% for the month.
Performance was hurt by its exposure to the oil equipment and fertilizer sectors, which normally benefit from higher energy prices. China imposed price and export restrictions in the energy sector.
At the end of March, we positioned the portfolio to better cope with the difficulties in China's economy and in the global market due to persistently high energy prices.


<ul>
<li>Hong Kong Alpha portfolio gained 0.46 % in February resulting in a 2.99% underperformance to its benchmark. The portfolio has outperformed HK indexes by 53% to 75% since inception 10/1/24.</li>
<li>Hong Kong Alpha has generated 63% of its return from alpha and has a Sharpe ratio of 1.71 since inception. The portfolio's annualized mean excess return is 24%.</li>
<li>At the end of February, we reduced positions in the technology sector and added positions in the energy and building materials sectors.</li>
</ul>


Hong Kong Alpha portfolio gained 0.46 % in February resulting in a 2.99% underperformance to its benchmark. The portfolio has outperformed HK indexes by 53% to 75% since inception 10/1/24.
Hong Kong Alpha has generated 63% of its return from alpha and has a Sharpe ratio of 1.71 since inception. The portfolio's annualized mean excess return is 24%.
At the end of February, we reduced positions in the technology sector and added positions in the energy and building materials sectors.


HONG KONG ALPHA PORTFOLIO: (February 2026)

Hong Kong

Lee & Man Paper Manufacturing is a major paper and pulp producer specializing in containerboard, tissue paper, and corrugating medium for various industrial and consumer applications. The company operates a vertically integrated model, producing a wide array of paper products from raw materials to finished goods. Headquartered in Hong Kong, the company was established in 1994.

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Lee & Man Paper Manufacturing (2314 HK)

Lee & Man (2314): Higher Dividend, AI + ASEAN Launch

Lee & Man Paper exceeded expectations in 2025 with a 50% YoY profit jump, doubled dividend, and AI-driven production efficiency leading to higher...

Henry Soediarko

HONG KONG ALPHA PORTFOLIO: (January 2026)

At the end of January, we began to move out of materials and tech and into early cycle sectors. We continue with mid-month exposure adjustments: we...

David Mudd

Lee & Man (2314): Recovery Play

Paper manufacturing sector shows signs of recovery with cheap valuation, big players reducing capacity to boost prices, and contributing to...

Henry Soediarko

HONG KONG ALPHA PORTFOLIO: (March 2026)

Guoquan Food announced that management sold a 4.74% stake at a discounted price of $3.8 to boost the liquidity of the shares. We viewed the move...

David Mudd

HONG KONG ALPHA PORTFOLIO: (February 2026)

The war, which launched at the beginning of the month, is now into its second week and its economic effects are being reflected in global markets....

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Lee & Man (2314): Higher Dividend, AI + ASEAN Launch

​Lee & Man Paper exceeded expectations in 2025 with a 50% YoY profit jump, doubled dividend, and AI-driven production efficiency leading to higher...

Henry Soediarko

HONG KONG ALPHA PORTFOLIO: (January 2026)

At the end of January, we began to move out of materials and tech and into early cycle sectors. We continue with mid-month exposure adjustments: we...

David Mudd

Lee & Man (2314): Recovery Play

​Paper manufacturing sector shows signs of recovery with cheap valuation, big players reducing capacity to boost prices, and contributing to...

Henry Soediarko

HONG KONG ALPHA PORTFOLIO: (March 2026)

Guoquan Food announced that management sold a 4.74% stake at a discounted price of $3.8 to boost the liquidity of the shares. We viewed the move...

David Mudd

HONG KONG ALPHA PORTFOLIO: (February 2026)

The war, which launched at the beginning of the month, is now into its second week and its economic effects are being reflected in global markets....

David Mudd

Lee & Man Paper exceeded expectations in 2025 with a 50% YoY profit jump, doubled dividend, and AI-driven production efficiency leading to higher...

Paper manufacturing sector shows signs of recovery with cheap valuation, big players reducing capacity to boost prices, and contributing to...