SEHK:2128

Stock Analysis Report

China Lesso Group Holdings

Executive Summary

China Lesso Group Holdings Limited, an investment holding company, manufactures and sells building materials and interior decoration products in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • China Lesso Group Holdings has significant price volatility in the past 3 months.

Share Price & News

How has China Lesso Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.6%

SEHK:2128

3.3%

HK Building

1.5%

HK Market


1 Year Return

46.8%

SEHK:2128

14.2%

HK Building

-4.7%

HK Market

2128 outperformed the Building industry which returned 14.2% over the past year.

2128 outperformed the Market in Hong Kong which returned -4.7% over the past year.


Share holder returns

2128IndustryMarket
7 Day7.6%3.3%1.5%
30 Day41.3%19.0%3.9%
90 Day35.3%5.2%-8.2%
1 Year56.3%46.8%18.3%14.2%-1.4%-4.7%
3 Year84.0%63.3%-4.5%-9.1%31.5%18.3%
5 Year87.7%58.3%-11.2%-19.0%24.3%3.4%

Price Volatility Vs. Market

How volatile is China Lesso Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Lesso Group Holdings undervalued based on future cash flows and its price relative to the stock market?

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Lesso Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Lesso Group Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

China Lesso Group Holdings is overvalued based on earnings compared to the HK Building industry average.

China Lesso Group Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Lesso Group Holdings is good value based on expected growth next year.


Price Based on Value of Assets

China Lesso Group Holdings is overvalued based on assets compared to the HK Building industry average.


Next Steps

Future Growth

How is China Lesso Group Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Lesso Group Holdings's revenue is expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

China Lesso Group Holdings's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

China Lesso Group Holdings's revenue growth is expected to exceed the Hong Kong market average.

China Lesso Group Holdings's earnings growth is expected to exceed the Hong Kong market average.

China Lesso Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Lesso Group Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has China Lesso Group Holdings performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Lesso Group Holdings's year on year earnings growth rate has been positive over the past 5 years.

China Lesso Group Holdings's 1-year earnings growth is less than its 5-year average (8.7% vs 11.9%)

China Lesso Group Holdings's earnings growth has not exceeded the HK Building industry average in the past year (8.7% vs 20.1%).


Return on Equity

China Lesso Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Lesso Group Holdings used its assets more efficiently than the HK Building industry average last year based on Return on Assets.


Return on Capital Employed

China Lesso Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Lesso Group Holdings's financial position?


Financial Position Analysis

China Lesso Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Lesso Group Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Lesso Group Holdings's level of debt (77.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (37.1% vs 77.8% today).

Debt is well covered by operating cash flow (37.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is China Lesso Group Holdings's current dividend yield, its reliability and sustainability?

5.01%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Lesso Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).

China Lesso Group Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.75%).

Whilst dividend payments have been stable, China Lesso Group Holdings has been paying a dividend for less than 10 years.

Dividend payments have increased, but China Lesso Group Holdings only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

What is the CEO of China Lesso Group Holdings's salary, the management and board of directors tenure and is there insider trading?

9.4yrs

Average board tenure


CEO

Manlun Zuo (46yo)

CN¥1,231,000

Compensation

Mr. Manlun Zuo serves as the Chief Executive Officer of China Lesso Group Holdings Limited. Mr. Zuo is responsible for the overall management of the daily business operations and sales of China Liansu Grou ...


CEO Compensation Analysis

Manlun's remuneration is lower than average for companies of similar size in Hong Kong.

Manlun's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

9.4yrs

Average Tenure

51.5yo

Average Age

The tenure for the China Lesso Group Holdings board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Guirong Huang (43yo)

    VP & Executive Director

    • Compensation: CN¥1.31m
  • Shaoquan Lin (43yo)

    VP & Executive Director

    • Compensation: CN¥1.52m
  • Manlun Zuo (46yo)

    CEO & Executive Director

    • Compensation: CN¥1.23m
  • Zhaocong Kong (53yo)

    VP & Executive Director

    • Compensation: CN¥1.24m
  • Jianfeng Luo (47yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥1.82b
  • Zhiqiang Lai (53yo)

    VP & Executive Director

    • Compensation: CN¥1.24m
  • Dewei Lin (59yo)

    Executive Director

    • Compensation: CN¥888.81m
  • Guonan Chen (51yo)

    VP & Executive Director

    • Compensation: CN¥1.86b
  • Xiaoping Zuo (52yo)

    VP & Executive Director

    • Compensation: CN¥1.22m
  • Luen Wong (57yo)

    Founder & Chairman

    • Compensation: CN¥1.22m

Board Members

  • Guirong Huang (43yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.31m
  • Shaoquan Lin (43yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.52m
  • Manlun Zuo (46yo)

    CEO & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.23m
  • Zhaocong Kong (53yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.24m
  • Jianfeng Luo (47yo)

    Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥1.82b
  • Zhiqiang Lai (53yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.24m
  • Dewei Lin (59yo)

    Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥888.81m
  • Guonan Chen (51yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.86b
  • Xiaoping Zuo (52yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥1.22m
  • Luen Wong (57yo)

    Founder & Chairman

    • Compensation: CN¥1.22m

Company Information

China Lesso Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Lesso Group Holdings Limited
  • Ticker: 2128
  • Exchange: SEHK
  • Founded:
  • Industry: building products
  • Sector: capital goods
  • Market Cap: HK$21.469b
  • Shares outstanding: 3.10b
  • Website: Click here

Number of Employees


Location

  • China Lesso Group Holdings Limited
  • Liansu Industrial Estate
  • Longjiang Town
  • Foshan
  • Guangdong Province
  • 528318
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2128SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2010
CUPH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2010
ULSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2010
2128SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2010
2128SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2010

Biography

China Lesso Group Holdings Limited, an investment holding company, manufactures and sells building materials and interior decoration products in the People’s Republic of China and internationally. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/17 13:00
End of Day Share Price2019/07/17 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.