SEHK:2128

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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 China and internationally.


Snowflake Analysis

Solid track record with mediocre balance sheet.

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

Stable Share Price: 2128's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

2128

4.6%

HK Building

-1.2%

HK Market


1 Year Return

135.8%

2128

102.4%

HK Building

7.1%

HK Market

Return vs Industry: 2128 exceeded the Hong Kong Building industry which returned 102.4% over the past year.

Return vs Market: 2128 exceeded the Hong Kong Market which returned 7.1% over the past year.


Shareholder returns

2128IndustryMarket
7 Day0%4.6%-1.2%
30 Day19.5%22.2%-2.8%
90 Day43.6%36.2%7.1%
1 Year146.5%135.8%109.3%102.4%11.5%7.1%
3 Year238.8%194.9%99.8%85.3%1.8%-9.1%
5 Year228.6%170.3%60.0%45.5%13.8%-5.2%

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 compared to its fair value and its price relative to the market?

10.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2128 (HK$15.54) is trading below our estimate of fair value (HK$17.34)

Significantly Below Fair Value: 2128 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2128 is poor value based on its PE Ratio (14.2x) compared to the HK Building industry average (7.5x).

PE vs Market: 2128 is poor value based on its PE Ratio (14.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2128 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2128 is overvalued based on its PB Ratio (2.6x) compared to the HK Building industry average (0.5x).


Next Steps

Future Growth

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

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2128's forecast earnings growth (13.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 2128's earnings (13.7% per year) are forecast to grow slower than the Hong Kong market (19% per year).

High Growth Earnings: 2128's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2128's revenue (10.4% per year) is forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Revenue: 2128's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2128's Return on Equity is forecast to be low in 3 years time (19.4%).


Next Steps

Past Performance

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

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2128 has high quality earnings.

Growing Profit Margin: 2128's current net profit margins (11.5%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: 2128's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: 2128's earnings growth over the past year (21.4%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: 2128 earnings growth over the past year (21.4%) exceeded the Building industry 3.4%.


Return on Equity

High ROE: 2128's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is China Lesso Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2128's short term assets (CN¥17.7B) do not cover its short term liabilities (CN¥20.5B).

Long Term Liabilities: 2128's short term assets (CN¥17.7B) exceed its long term liabilities (CN¥3.2B).


Debt to Equity History and Analysis

Debt Level: 2128's debt to equity ratio (78%) is considered high.

Reducing Debt: 2128's debt to equity ratio has increased from 37.2% to 78% over the past 5 years.

Debt Coverage: 2128's debt is well covered by operating cash flow (39.8%).

Interest Coverage: 2128's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2128's dividend (2.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.3%).

High Dividend: 2128's dividend (2.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2128 has been paying a dividend for less than 10 years.

Growing Dividend: 2128's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.4%), 2128's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2128's dividends in 3 years are forecast to be well covered by earnings (36.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.5yrs

Average board tenure


CEO

Manlun Zuo (47 yo)

no data

Tenure

CN¥1,785,000

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

Compensation vs Market: Manlun's total compensation ($USD257.02K) is below average for companies of similar size in the Hong Kong market ($USD566.23K).

Compensation vs Earnings: Manlun's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Luen Wong
Founder & Executive Chairmanno dataCN¥1.78m68.41%
CN¥ 33.0b
Manlun Zuo
CEO & Executive Directorno dataCN¥1.79m0.15%
CN¥ 72.1m
Jianfeng Luo
Executive Director10.33yrsCN¥1.78m0.062%
CN¥ 29.9m
Zhiqiang Lai
VP & Executive Director10.5yrsCN¥1.78mno data
Xiaoping Zuo
VP & Executive Director10.5yrsCN¥1.78m0.074%
CN¥ 35.9m
Guonan Chen
VP & Executive Director10.5yrsCN¥1.78mno data
Guirong Huang
VP & Executive Director10.5yrsCN¥1.78mno data
Dewei Lin
Executive Director10.5yrsCN¥1.78mno data
Zhaocong Kong
VP & Executive Director10.5yrsCN¥1.78mno data
Shaoquan Lin
VP & Executive Director10.5yrsCN¥1.77mno data
Kwok Wong
Independent Non-Executive Director10.5yrsCN¥285.00kno data
Zhigang Tao
Independent Non-Executive Director4.92yrsCN¥285.00kno data

10.5yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 2128's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$48.212b
  • Shares outstanding: 3.10b
  • Website: https://www.lesso.com

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
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 China and internationally. The company primarily offers plas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 12:42
End of Day Share Price2020/08/11 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.