China Lesso Group Holdings (2128) AI Stock Analysis

• Market Cap: HK$13.21B
• Dividend Yield: 4.66%
• Average Volume (3M): 4.50M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.33
• Revenue Growth: -14.13%
• EPS Growth: -30.69%
• Country: HK
• Employees: 20,400
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): 0.59
• Shares Outstanding: 3,102,418,500
• 10 Day Avg. Volume: 7,551,325
• 30 Day Avg. Volume: 4,504,810
• PEG Ratio: -0.51
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

China Lesso Group Holdings has a robust financial foundation with strong profitability margins and a solid balance sheet. However, the declining revenue and profitability margins, along with a lack of cash flow visibility, pose significant risks. The stock shows positive technical indicators and is attractively valued with a low P/E ratio and high dividend yield, which helps offset some of the financial concerns.

China Lesso Group Holdings Business Overview & Revenue Model

Company Description

China Lesso Group Holdings Limited is a leading industrial conglomerate in China, primarily engaged in the manufacture and sale of piping systems, building materials, and home improvement products. The company's comprehensive product portfolio includes plastic pipes, fittings, sanitary ware, and other related products, serving a wide range of sectors including construction, agriculture, and infrastructure development. With a strong focus on innovation and quality, China Lesso has established a significant presence both domestically and internationally.

How the Company Makes Money

China Lesso Group Holdings generates revenue through the production and distribution of a diverse range of building materials, particularly focusing on its core offering of plastic piping systems and fittings. The company's revenue model is built on manufacturing high-quality, cost-effective products that meet the needs of various industries, including construction and infrastructure. Key revenue streams include sales of piping systems, sanitary ware, and other building materials. The company leverages an extensive distribution network, supported by strategic partnerships and collaborations, to ensure wide market reach and accessibility. Additionally, China Lesso benefits from economies of scale and a robust supply chain, enhancing its competitive advantage and profitability in the market.

China Lesso Group Holdings Financial Statement Overview

Summary

Strong profitability margins and a solid balance sheet with moderate leverage and a healthy equity ratio. However, declining revenue and profitability margins coupled with a lack of cash flow data raise concerns about future sustainability and financial flexibility.

Income Statement

The income statement shows a mixed performance. The Gross Profit Margin for 2024 is approximately 26.6%, indicating good profitability. However, the Net Profit Margin declined to 6.2% from 7.7% in 2023, showing a decrease in net income efficiency. Revenue decreased by 12.4% from 2023 to 2024, suggesting challenges in maintaining sales growth. EBIT Margin also saw a decline to 9.2% from 16.5% in the previous year, while EBITDA Margin remained relatively stable at 20.1%. Overall, while profitability remains decent, declining revenue and margins signal potential areas of concern.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.82, indicating moderate leverage. The Return on Equity (ROE) stands at 7.1%, a decrease from 10.1% in 2023, reflecting reduced profitability relative to equity. The Equity Ratio is 40.9%, showing a healthy proportion of equity in the company’s asset base. Overall, the balance sheet is strong, but reducing leverage and improving ROE would enhance financial health further.

Cash Flow

The cash flow statement highlights concerns with zero reported Operating and Free Cash Flows in 2024, compared to previous positive figures. This absence of cash flow data complicates the assessment of cash generation efficiency and financial flexibility. The Free Cash Flow to Net Income Ratio cannot be calculated for 2024, but it was positive in prior years. This lack of visibility in cash flow metrics presents a significant risk to financial stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
27.03B	30.87B	30.77B	32.06B	28.07B
	Gross Profit
7.19B	8.12B	8.35B	8.12B	8.37B
	EBIT
2.48B	5.09B	3.44B	3.06B	4.79B
	EBITDA
5.44B	5.61B	5.79B	5.72B	6.20B
	Net Income Common Stockholders
1.68B	2.37B	2.52B	3.04B	3.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.64B	5.17B	6.65B	7.15B	6.57B
	Total Assets
58.33B	60.03B	58.95B	54.48B	46.53B
	Total Debt
19.65B	20.70B	20.61B	18.28B	16.24B
	Net Debt
13.00B	15.54B	14.88B	12.10B	9.79B
	Total Liabilities
33.91B	35.72B	36.36B	32.68B	26.17B
	Stockholders Equity
23.84B	23.50B	21.79B	20.77B	19.84B
Cash Flow		Free Cash Flow
0.00	2.49B	1.26B	1.91B	747.67M
	Operating Cash Flow
0.00	6.70B	4.57B	5.17B	2.84B
	Investing Cash Flow
0.00	-4.25B	-4.55B	-5.49B	-4.26B
	Financing Cash Flow
0.00	-3.04B	-504.40M	87.18M	1.56B

China Lesso Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2128, the sentiment is Positive. The current price of 4.43 is above the 20-day moving average (MA) of 3.99, above the 50-day MA of 4.00, and above the 200-day MA of 3.58, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2128.

China Lesso Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2600	80 Outperform	$120.43B	6.57	20.63%	3.43%	2.84%	―
2128	70 Outperform	HK$13.21B	7.24	7.12%	4.66%	-14.13%	-30.69%
1109	70 Neutral	$192.89B	6.96	9.66%	10.10%	9.97%	-19.80%
Sector *	63 Neutral	$767.10M	8.45	4.79%	3.70%	1.11%	-32.34%
3320	62 Neutral	HK$33.55B	9.23		6.80%	―	―
1313	50 Neutral	HK$11.73B	31.34	0.79%	1.19%	―	―

China Lesso Group Holdings Corporate Events

China Lesso Group Announces AGM and Key Resolutions for 2025

China Lesso Group Holdings Limited has announced its annual general meeting scheduled for May 20, 2025, where shareholders will consider several resolutions, including the approval of audited financial statements, the declaration of a final dividend of HK20 cents per share, and the appointment and re-election of directors. Additionally, the company seeks authorization to allot and issue shares, with a cap of 20% of the existing shares, excluding treasury shares. This meeting and the proposed resolutions are crucial for the company’s governance and strategic direction, impacting its financial management and shareholder relations.

China Lesso Reports Decline in 2024 Financial Results

China Lesso Group Holdings Limited announced a decrease in its financial performance for the year ended December 31, 2024. The company’s revenue fell by 12.4% to RMB27,026 million, and its profit for the year dropped by 29.4% to RMB1,638 million. Despite these declines, the board recommended a final dividend of HK20 cents per share. The results reflect challenges in the market, impacting the company’s profitability and earnings per share, which decreased by 28.6%.

China Lesso Declares Final Dividend for 2024

China Lesso Group Holdings Limited has announced a final cash dividend of HKD 0.2 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to providing returns to its shareholders, with the dividend payment scheduled for July 9, 2025.

China Lesso Group Strengthens ESG Commitment with New Committee

China Lesso Group Holdings Limited has established a Sustainable Development Committee to enhance its environmental, social, and governance (ESG) efforts. This committee, chaired by the CEO, will oversee the company’s ESG strategies, ensuring that sustainability goals are integrated into decision-making processes and that ESG factors are considered in major transactions. The committee will also be responsible for reviewing the work of seven specialized working groups focused on various ESG aspects, such as environmental management, human resources, safety, customer service, compliance, and procurement. This initiative underscores the company’s commitment to long-term value creation and responsible business practices.

China Lesso Group Holdings Announces Board Composition and Committee Structure

China Lesso Group Holdings Limited has announced the composition of its board of directors, which includes a mix of executive and independent non-executive directors. The board has established four committees: Audit, Nomination, Remuneration, and Sustainability, to enhance corporate governance and strategic oversight. This announcement underscores the company’s commitment to structured governance and may impact its strategic direction and stakeholder confidence.

China Lesso Announces Upcoming Board Meeting to Discuss Dividends and Financial Results

China Lesso Group Holdings Limited has announced an upcoming board meeting scheduled for March 28, 2025, where decisions regarding the declaration, recommendation, or payment of dividends will be made. Additionally, the meeting will approve the publication of the audited profit and loss statement for the year ending December 31, 2024, which could influence investor sentiment and market positioning.