Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 30% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥27.9b to CN¥25.9b. EPS estimate also fell from CN¥0.711 per share to CN¥0.50 per share. Net income forecast to grow 22% next year vs 22% growth forecast for Building industry in Hong Kong. Consensus price target broadly unchanged at HK$5.70. Share price was steady at HK$4.88 over the past week. Declared Dividend • Apr 01
Dividend of HK$0.20 announced Shareholders will receive a dividend of HK$0.20. Ex-date: 8th June 2026 Payment date: 10th July 2026 Dividend yield will be 4.0%, which is lower than the industry average of 7.4%. Sustainability & Growth The dividend has increased by an average of 5.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 73% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 31
China Lesso Group Holdings Limited, Annual General Meeting, May 28, 2026 China Lesso Group Holdings Limited, Annual General Meeting, May 28, 2026. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$5.18, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 19x in the Building industry in Asia. Total loss to shareholders of 14% over the past three years. Announcement • Mar 17
China Lesso Group Holdings Limited to Report Fiscal Year 2025 Results on Mar 30, 2026 China Lesso Group Holdings Limited announced that they will report fiscal year 2025 results on Mar 30, 2026 Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$5.68, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 19x in the Building industry in Asia. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$10.54 per share. New Risk • Oct 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 15% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Oct 02
First half 2025 earnings released: EPS: CN¥0.34 (vs CN¥0.34 in 1H 2024) First half 2025 results: EPS: CN¥0.34 (up from CN¥0.34 in 1H 2024). Revenue: CN¥12.5b (down 8.0% from 1H 2024). Net income: CN¥1.05b (flat on 1H 2024). Profit margin: 8.4% (up from 7.7% in 1H 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 15% per year. Reported Earnings • Sep 02
First half 2025 earnings released: EPS: CN¥0.34 (vs CN¥0.34 in 1H 2024) First half 2025 results: EPS: CN¥0.34 (up from CN¥0.34 in 1H 2024). Revenue: CN¥12.5b (down 8.0% from 1H 2024). Net income: CN¥1.05b (flat on 1H 2024). Profit margin: 8.4% (up from 7.7% in 1H 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 19% per year. Announcement • Aug 19
China Lesso Group Holdings Limited to Report First Half, 2025 Results on Aug 29, 2025 China Lesso Group Holdings Limited announced that they will report first half, 2025 results on Aug 29, 2025 Recent Insider Transactions • Jul 09
Independent Non-Executive Director recently bought HK$608k worth of stock On the 7th of July, Zhigang Tao bought around 150k shares on-market at roughly HK$4.05 per share. This transaction increased Zhigang's direct individual holding by 5x at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$27m. Insiders have collectively bought HK$76m more in shares than they have sold in the last 12 months. Upcoming Dividend • Jun 09
Upcoming dividend of HK$0.20 per share Eligible shareholders must have bought the stock before 16 June 2025. Payment date: 09 July 2025. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 4.8%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (2.7%). Recent Insider Transactions • Jun 06
CEO & Executive Director recently bought HK$6.9m worth of stock On the 3rd of June, Manlun Zuo bought around 2m shares on-market at roughly HK$4.00 per share. This transaction amounted to 26% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Manlun has been a buyer over the last 12 months, purchasing a net total of HK$15m worth in shares. New Risk • May 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 20% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 01
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.55 (down from CN¥0.77 in FY 2023). Revenue: CN¥27.0b (down 12% from FY 2023). Net income: CN¥1.68b (down 29% from FY 2023). Profit margin: 6.2% (down from 7.7% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • Mar 31
China Lesso Group Holdings Limited, Annual General Meeting, May 20, 2025 China Lesso Group Holdings Limited, Annual General Meeting, May 20, 2025. Declared Dividend • Mar 31
Dividend of HK$0.20 announced Shareholders will receive a dividend of HK$0.20. Ex-date: 16th June 2025 Payment date: 9th July 2025 Dividend yield will be 5.7%, which is lower than the industry average of 7.4%. Sustainability & Growth The dividend has increased by an average of 7.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 38% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.55 (down from CN¥0.77 in FY 2023). Revenue: CN¥27.0b (down 12% from FY 2023). Net income: CN¥1.68b (down 29% from FY 2023). Profit margin: 6.2% (down from 7.7% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Announcement • Mar 18
China Lesso Group Holdings Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 China Lesso Group Holdings Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$3.71, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 15x in the Building industry in Asia. Total loss to shareholders of 67% over the past three years. Valuation Update With 7 Day Price Move • Oct 01
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to HK$3.95, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 15x in the Building industry in Asia. Total loss to shareholders of 62% over the past three years. Recent Insider Transactions • Sep 13
Founder & Executive Chairman recently bought HK$10m worth of stock On the 11th of September, Luen Hei Wong bought around 4m shares on-market at roughly HK$2.51 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Luen Hei has been a buyer over the last 12 months, purchasing a net total of HK$40m worth in shares. Major Estimate Revision • Sep 05
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥32.6b to CN¥28.3b. EPS estimate fell from CN¥0.825 to CN¥0.672 per share. Net income forecast to grow 8.9% next year vs 17% growth forecast for Building industry in Hong Kong. Consensus price target down from HK$5.11 to HK$3.72. Share price fell 5.7% to HK$2.64 over the past week. Reported Earnings • Aug 31
First half 2024 earnings released: EPS: CN¥0.34 (vs CN¥0.48 in 1H 2023) First half 2024 results: EPS: CN¥0.34 (down from CN¥0.48 in 1H 2023). Revenue: CN¥13.6b (down 11% from 1H 2023). Net income: CN¥1.04b (down 30% from 1H 2023). Profit margin: 7.7% (down from 9.8% in 1H 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 44% per year, which means it is performing significantly worse than earnings. Announcement • Aug 15
China Lesso Group Holdings Limited to Report First Half, 2024 Results on Aug 29, 2024 China Lesso Group Holdings Limited announced that they will report first half, 2024 results on Aug 29, 2024 Upcoming Dividend • Jun 21
Upcoming dividend of HK$0.20 per share Eligible shareholders must have bought the stock before 28 June 2024. Payment date: 18 July 2024. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 5.9%. Lower than top quartile of Hong Kong dividend payers (7.8%). In line with average of industry peers (6.5%). Valuation Update With 7 Day Price Move • May 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$4.50, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Building industry in Asia. Total loss to shareholders of 74% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.62 per share. Buy Or Sell Opportunity • May 20
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 33% to HK$4.50. The fair value is estimated to be HK$3.62, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 19%. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Reported Earnings • May 05
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.77 (down from CN¥0.82 in FY 2022). Revenue: CN¥30.9b (flat on FY 2022). Net income: CN¥2.37b (down 6.1% from FY 2022). Profit margin: 7.7% (down from 8.2% in FY 2022). Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 17%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 43% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$3.61, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 14x in the Building industry in Asia. Total loss to shareholders of 80% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$6.78 per share. Recent Insider Transactions • Apr 05
CEO & Executive Director recently bought HK$1.7m worth of stock On the 2nd of April, Manlun Zuo bought around 500k shares on-market at roughly HK$3.31 per share. This transaction amounted to 9.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Manlun has been a buyer over the last 12 months, purchasing a net total of HK$5.3m worth in shares. Announcement • Mar 29
China Lesso Group Holdings Limited, Annual General Meeting, May 24, 2024 China Lesso Group Holdings Limited, Annual General Meeting, May 24, 2024. Reported Earnings • Mar 29
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.77 (down from CN¥0.82 in FY 2022). Revenue: CN¥30.9b (flat on FY 2022). Net income: CN¥2.37b (down 5.9% from FY 2022). Profit margin: 7.7% (down from 8.2% in FY 2022). Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 17%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Building industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 41% per year, which means it is performing significantly worse than earnings. Announcement • Mar 29
China Lesso Group Holdings Limited Proposes Final Dividend for the Year Ended 31 December 2023, Payable on 18 July 2024 China Lesso Group Holdings Limited proposed final dividend of HKD 0.2 per share for the year ended 31 December 2023 at its annual general meeting to be held on 24 May 2024. Ex-dividend date is 28 June 2024. Record date is 05 July 2024. Payment date is 18 July 2024. Buy Or Sell Opportunity • Mar 22
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at HK$3.76. The fair value is estimated to be HK$4.80, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 29% in the next 2 years. Announcement • Mar 12
China Lesso Group Holdings Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 China Lesso Group Holdings Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Buy Or Sell Opportunity • Feb 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to HK$3.86. The fair value is estimated to be HK$4.83, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 29% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$3.69, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Building industry in Hong Kong. Total loss to shareholders of 72% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$4.83 per share. Buying Opportunity • Jan 17
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 6.6%. The fair value is estimated to be HK$4.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 21% in 2 years. Earnings is forecast to grow by 29% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$4.39, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 4x in the Building industry in Hong Kong. Total loss to shareholders of 62% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$4.45 per share. Recent Insider Transactions • Oct 06
Founder & Executive Chairman recently bought HK$10.0m worth of stock On the 3rd of October, Luen Hei Wong bought around 3m shares on-market at roughly HK$3.99 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth HK$20m. Luen Hei has been a buyer over the last 12 months, purchasing a net total of HK$71m worth in shares. Reported Earnings • Oct 01
First half 2023 earnings released: EPS: CN¥0.48 (vs CN¥0.42 in 1H 2022) First half 2023 results: EPS: CN¥0.48 (up from CN¥0.42 in 1H 2022). Revenue: CN¥15.3b (up 2.7% from 1H 2022). Net income: CN¥1.49b (up 15% from 1H 2022). Profit margin: 9.8% (up from 8.7% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Building industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Recent Insider Transactions • Sep 15
Founder & Executive Chairman recently bought HK$10m worth of stock On the 12th of September, Luen Hei Wong bought around 2m shares on-market at roughly HK$4.17 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth HK$11m. Luen Hei has been a buyer over the last 12 months, purchasing a net total of HK$41m worth in shares. Recent Insider Transactions • Sep 04
Founder & Executive Chairman recently bought HK$11m worth of stock On the 29th of August, Luen Hei Wong bought around 3m shares on-market at roughly HK$4.27 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth HK$20m. Luen Hei has been a buyer over the last 12 months, purchasing a net total of HK$31m worth in shares. Reported Earnings • Aug 30
First half 2023 earnings released: EPS: CN¥0.48 (vs CN¥0.42 in 1H 2022) First half 2023 results: EPS: CN¥0.48 (up from CN¥0.42 in 1H 2022). Revenue: CN¥15.3b (up 2.7% from 1H 2022). Net income: CN¥1.49b (up 15% from 1H 2022). Profit margin: 9.8% (up from 8.7% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Building industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Announcement • Aug 18
China Lesso Group Holdings Limited to Report First Half, 2023 Results on Aug 28, 2023 China Lesso Group Holdings Limited announced that they will report first half, 2023 results on Aug 28, 2023 Recent Insider Transactions • Jun 18
Founder & Executive Chairman recently bought HK$20m worth of stock On the 13th of June, Luen Hei Wong bought around 4m shares on-market at roughly HK$5.30 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Luen Hei's only on-market trade for the last 12 months. Upcoming Dividend • May 08
Upcoming dividend of HK$0.30 per share at 4.5% yield Eligible shareholders must have bought the stock before 15 May 2023. Payment date: 25 May 2023. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 4.5%. Lower than top quartile of Hong Kong dividend payers (7.5%). In line with average of industry peers (4.3%). Major Estimate Revision • Mar 27
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥35.7b to CN¥33.9b. EPS estimate also fell from CN¥1.21 per share to CN¥0.989 per share. Net income forecast to grow 21% next year vs 22% growth forecast for Building industry in Hong Kong. Consensus price target down from HK$12.12 to HK$11.30. Share price fell 5.3% to HK$7.08 over the past week. Reported Earnings • Mar 22
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.82 (down from CN¥0.99 in FY 2021). Revenue: CN¥30.8b (down 4.0% from FY 2021). Net income: CN¥2.52b (down 17% from FY 2021). Profit margin: 8.2% (down from 9.5% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Building industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 7% per year. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$7.44, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Building industry in Hong Kong. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$6.27 per share. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 16% share price gain to HK$9.49, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Building industry in Hong Kong. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.75 per share. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 17% share price gain to HK$7.48, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 7x in the Building industry in Hong Kong. Negligible returns to shareholders over past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.39 per share. Buying Opportunity • Nov 01
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be HK$8.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10.0% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 20% in 2 years. Earnings is forecast to grow by 63% in the next 2 years. Announcement • Oct 30
China Lesso Group Holdings Limited (SEHK:2128), Tan Wenhua and Tan Xin entered into the Equity Transfer Agreement to acquire 45% stake in Qujing Yangguang New Energy Co., Ltd from Jinzhou Yangguang Energy Co., Ltd. for CNY 1.35 billion. China Lesso Group Holdings Limited (SEHK:2128), Tan Wenhua and Tan Xin entered into the Equity Transfer Agreement to acquire 45% stake in Qujing Yangguang New Energy Co., Ltd from Jinzhou Yangguang Energy Co., Ltd. for CNY 1.35 billion on October 28, 2022. 51.1% of the Consideration or CNY 689.85 million will be settled by cash and (i) for Purchasers which were established in the PRC, payable on the Completion Date; and (ii) for Purchaser which was established in Hong Kong, payable within 10 days after the Completion Date or within 5 Business Days after opening the payment account that complies with foreign exchange regulations, whichever is later; and (ii) the remaining 48.9% of the Consideration or CNY 660.15 million will be settled by cash and payable within six months after the Completion Date. The transaction is subject to (i)the Equity Transfer Agreement and the Disposal having been approved by the Board and the Independent Shareholders at the EGM, and the Director(s) and Shareholder(s) who have material interest in the Disposal having abstained from voting at the EGM in accordance with the Listing Rules; (ii) the existing shareholders of Qujing Yangguang having approved the Disposal and giving up the pre-emptive right, the tag-along right and other similar rights; (iii) all other requisite internal and external authorisation, approval, fillings and consents of relevant third parties for the Disposal having been obtained. Completion shall take place as soon as practicable but in any event no later than the June 30, 2023. Use of proceeds: From First Milestone Payment 1. expansion and growth of the business of the Remaining Group including, acquisition of suitable targets-CNY150 million; 2. the repayment of bank loans and other borrowings of the Remaining Group-CNY120 million; 3. the proposed distribution of the Special Dividend to the Shareholders-CNY222.6 million; 4. general working capital of the Remaining Group-CNY136.9 million. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$6.34, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 6x in the Building industry in Hong Kong. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$4.89 per share. Major Estimate Revision • Sep 05
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥36.4b to CN¥33.2b. EPS estimate also fell from CN¥1.11 per share to CN¥0.99 per share. Net income forecast to grow 40% next year vs 40% growth forecast for Building industry in Hong Kong. Consensus price target down from HK$14.28 to HK$12.54. Share price fell 7.3% to HK$9.14 over the past week. Reported Earnings • Aug 31
First half 2022 earnings released: EPS: CN¥0.42 (vs CN¥0.59 in 1H 2021) First half 2022 results: EPS: CN¥0.42 (down from CN¥0.59 in 1H 2021). Revenue: CN¥14.9b (up 1.1% from 1H 2021). Net income: CN¥1.30b (down 29% from 1H 2021). Profit margin: 8.7% (down from 12% in 1H 2021). Over the next year, revenue is forecast to grow 15%, compared to a 8.3% growth forecast for the Building industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 30
China Lesso Group Holdings Limited Announces Board Changes The board of directors of China Lesso Group Holdings Limited announced that Mr. Wong Luen Hei, the executive director of the Company, has ceased to be the chairman of the nomination committee of the Company but remains as a member of the Nomination Committee and Ms. Lu Jiandong, an independent non-executive director of the Company, has been appointed as the chairlady of the Nomination Committee with effect from 30 August 2022. Announcement • Aug 17
China Lesso Group Holdings Limited to Report First Half, 2022 Results on Aug 29, 2022 China Lesso Group Holdings Limited announced that they will report first half, 2022 results on Aug 29, 2022 
