Core Viewpoint - China Lesso (02128) has seen its stock price increase by over 30% year-to-date, with a recent rise of 6.15% to HKD 6.21, driven by positive market sentiment and a favorable report from Citigroup [1] Financial Performance - Citigroup has revised its earnings forecast for China Lesso for 2026 to 2028, reducing estimates by 11% to 18% due to impairment in non-core projects [1] - The company's core business in mainland China shows signs of stabilization, with reduced drag from residential business offset by strong growth in non-residential sectors such as agriculture, industry, healthcare, and municipal services [1] Valuation and Target Price - Citigroup has set a target price of HKD 7, up from HKD 6.5, based on a forecasted price-to-earnings ratio of 9 times for this year, which is 0.5 standard deviations above the historical average [1] Growth Drivers - The overseas pipeline business of China Lesso is expected to be a major growth driver, with sales growth projected to exceed 50% this year [1] - The company is anticipated to report a core net profit of RMB 938 million for the second half of last year, reflecting a year-on-year decline of 10% and a half-year decline of 13% [1] Profit Margins - The net profit margin for the second half of last year is expected to slightly decrease to 7.4% from 8.7% in the first half [1] Market Sentiment - The stock has recently appreciated by approximately 20% amid positive sentiment, and any potential pullback is viewed as a buying opportunity [1]

Core Viewpoint - China Liansu (02128) has seen its stock price increase over 30% year-to-date, with a recent rise of 6.15% to HKD 6.21, and a trading volume of HKD 97.15 million [1] Group 1: Financial Performance - Citigroup's recent report indicates a downward revision of China Liansu's earnings forecast for 2026 to 2028 by 11% to 18%, reflecting impairments in non-core projects [1] - The company's core business in mainland China shows signs of stabilization, with reduced drag from residential operations, offset by strong growth in non-residential sectors such as agriculture, industry, healthcare, and municipal services [1] - Citigroup projects a 10% year-on-year decline in core net profit for the second half of last year to RMB 938 million, with a 13% decline compared to the first half, and a slight decrease in net profit margin from 8.7% to 7.4% [1] Group 2: Valuation and Investment Outlook - Citigroup has set a target price for China Liansu at HKD 7, up from HKD 6.5, based on a forecasted price-to-earnings ratio of 9 times, which is 0.5 standard deviations above the historical average [1] - The overseas pipeline business of China Liansu is expected to be a major growth driver, with sales growth anticipated to exceed 50% this year [1] - The stock has recently appreciated approximately 20% amid positive sentiment, and any potential pullbacks are viewed as buying opportunities [1]

Group 1 - The core viewpoint of the article highlights that China Liansu (2128.HK), a leading player in the plastic pipe industry, has recently regained upward momentum, with its stock price rising over 4% to HKD 6.11 during intraday trading [1] Group 2 - The article notes the recent active performance of China Liansu in the market, indicating a positive trend for the company [1] - The stock price increase reflects investor confidence and market interest in the company's prospects [1] - The rise in stock price may suggest potential growth opportunities within the plastic pipe industry [1]

Group 1 - China Liansu (2128.HK) has recently seen a resurgence in its stock price, rising over 4% to HKD 6.11 [1] - The Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development issued a notice on January 20, outlining measures to support urban renewal, emphasizing the construction of underground pipelines and integrated utility tunnels [1] - The report from Guangfa Securities highlights that the construction materials industry is currently at a low valuation, with a focus on urban renewal as a key driver for growth [1] Group 2 - The industry is expected to benefit from improved supply-demand dynamics, price increase expectations, and overseas expansion contributing to performance growth [1] - Citigroup's recent report indicates that Liansu's overseas channel business is anticipated to be a major growth driver, with sales expected to increase by over 50% this year [1] - Citigroup has raised Liansu's target price to HKD 7 [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2026年1月31日 狀態: 新提交 致：香港交易及結算所有限公司 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02128 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.05 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.05 HKD | | 1,000,000,000 | 本月底法定/註冊股本總額： HKD 1,000,000,000 FF301 第 1 頁 共 10 頁 v ...

Investment Rating - The report maintains a "Recommended" rating for the building materials industry [1] Core Views - The report anticipates significant growth in revenue and profit for fiberglass in Q4 2025, while traditional building materials face performance pressure [1] - The overall outlook for the cement industry indicates continued price and profit stabilization, with domestic pressures expected to persist [4][7] - The glass industry is projected to experience ongoing revenue and profit pressure, particularly in the float glass segment due to weak downstream demand [14][20] - The fiberglass sector is expected to see robust growth driven by increased demand for raw yarn and high-end fabrics [28] Summary by Sections Cement - Q4 2025 is expected to see domestic cement performance under pressure, while overseas markets may perform better. The average national cement price is projected at 357 RMB per ton, down 16% year-on-year [7] - The report notes that the cement industry is experiencing a bottoming out phase, with a year-on-year production decline of 7% from January to November 2025 [7] - Non-operating projects may impact profits, with companies accelerating capacity replacement and asset disposals [4][7] Glass - The float glass industry is expected to remain under pressure, with high inventory levels and ongoing losses. The average price for 5mm float glass is projected at 62 RMB per box in Q4 2025, down 17% year-on-year [14] - The photovoltaic glass segment is also expected to face significant revenue and profit pressure due to weak domestic installation demand, with a projected average price of 12.3 RMB per square meter in Q4 2025 [20] Fiberglass - The fiberglass sector is projected to see continued high growth in revenue and profit, with domestic net demand reaching 5.48 million tons, a 19% year-on-year increase [28] - The average price for mainstream products is expected to be 3,603 RMB per ton in 2025, with a slight decrease in Q4 [28] - High-end electronic fabric prices are expected to rise, benefiting companies with a first-mover advantage [28] Renovation Materials - The renovation materials sector is expected to face continued pressure, with a year-on-year decline in housing starts, completions, and sales area [4] - Companies are exploring new business channels to maintain resilience in performance [4]

Core Insights - The construction materials industry is currently at a low valuation level, with a focus on urban renewal and related opportunities. The allocation ratio for construction materials in Q4 2025 is 0.72%, an increase of 0.11 percentage points from Q3 2025, indicating significant potential for valuation recovery [6][15]. Group 1: Urban Renewal and Market Dynamics - The Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development issued a notice on January 20, 2026, to support urban renewal actions, providing specific operational guidelines for the "14th Five-Year Plan" urban renewal strategy. This includes a focus on "two renewals and two new projects," emphasizing the construction of underground pipelines and comprehensive utility tunnels [24]. - Companies involved in urban renewal and the renovation of old neighborhoods, such as Dongfang Yuhong, Keshun Co., Sankeshu, Weixing New Materials, and China Liansu, are recommended for attention [24]. Group 2: Construction Materials Sector Overview - The construction materials sector is experiencing a recovery in profitability, with expectations for continued improvement in 2026. The supply-side adjustments and structural changes in demand are expected to support this recovery [37]. - The cement market saw a 0.8% decrease in prices week-on-week, with the national average price at 345 RMB/ton as of January 30, 2026. The industry is currently at a historical low valuation, with companies like Huaxin Cement, Conch Cement, and Shafeng Cement recommended for investment [6][38]. Group 3: Key Company Developments - Keshun Co. established a semiconductor company to explore a second growth curve, focusing on integrated circuit chips and related technologies [20]. - Weixing New Materials plans to acquire an 88.26% stake in Beijing Songtiancheng Technology Co., enhancing its capabilities in municipal pipeline systems and expanding its market reach [23]. - Leading companies in the construction materials sector, such as Sankeshu and Huaxin Cement, are expected to report significant profit growth in 2025, driven by strong operational resilience and strategic adjustments [25][27].

Core Viewpoint - The A-share and Hong Kong stock markets have seen a collective surge in cyclical sectors, with the building materials sector, particularly represented by China Liansu, showing remarkable performance, indicating a growing confidence in cyclical assets and a potential value reassessment [1][4]. Group 1: Market Performance - China Liansu's stock price increased from 4.60 HKD to 6.24 HKD between January 13 and January 29, marking a cumulative rise of over 35%, with a notable daily increase of 9.47% on January 29 and a trading volume of 2.025 billion HKD [1]. - The cyclical sector's performance reflects a broader market trend, suggesting that the current rally is not merely short-term speculation but a sign of a deeper value reassessment of core cyclical assets [1]. Group 2: Economic Indicators - The cyclical sector is highly sensitive to economic indicators such as CPI and PPI, which have shown signs of recovery, with CPI rising 0.8% year-on-year in December, the highest in 34 months, and PPI's decline narrowing to 1.9% year-on-year [3]. - The government's continued focus on stabilizing growth through various policies is expected to support the building materials sector, with a positive outlook for CPI and PPI trends [3][4]. Group 3: Policy Support - The 2026 outlook indicates ongoing policy support for infrastructure investment, which is expected to positively impact the building materials sector's fundamentals and funding environment [4]. - The National Development and Reform Commission has outlined a comprehensive approach to promote reasonable price recovery, which is crucial for the profitability of building materials companies [3]. Group 4: Company-Specific Insights - China Liansu is positioned as a core asset within the cyclical sector, benefiting from structural opportunities in urbanization and infrastructure development [6][7]. - The company is actively expanding its export capabilities, with overseas revenue reaching 1.055 billion CNY in the first half of 2025, a 29.5% increase year-on-year, highlighting its growing international market presence [9]. - China Liansu's comprehensive product matrix in pipeline construction materials positions it well to capitalize on increasing domestic consumption driven by government policies [10]. Group 5: Investment Outlook - Institutional investors are optimistic about the cyclical sector, identifying building materials as a core investment opportunity, with China Liansu expected to benefit from robust demand and a favorable policy environment [12]. - The company's valuation remains attractive, with a PE ratio of 10.47 as of January 29, and a leading ROE of 4.377% in the building materials industry, indicating potential for valuation recovery as the sector enters a cyclical upturn [12].

花旗认为，联塑海外渠道业务有望成为未来增长的主要驱动力，今年销售增幅料逾五成。该行料联塑去 年下半年核心纯利同比跌10%至9.38亿元人民币，按半年则跌13%，并料下半年净利润率由去年上半年 的8.7%微降至7.4%。该股近期在正面情绪下累升约20%，认为如有任何回调将属入市机会。不过，在中 国基建产业链的选股顺序上，该行首选中联重科（000157）(01157)，随后为杭叉集团（603298） (603298.SH)，随后为联塑。 花旗发布研报称，在中国联塑(02128)业绩缄默期前与公司CFO及副CFO接洽。该行降联塑2026至28年 盈测介乎11%至18%，反映非核心项目减值。不过，其内地核心业务呈现企稳迹象，住宅业务的拖累减 少，并被非住宅业务如农业、工业、医疗及市政等业务强劲增长所抵销。该行以预测今年市盈率9倍为 估值基础(较历史均值高0.5个标准差)，目标价相应由6.5港元升至7港元，评级"买入"。 ...

智通财经APP获悉，花旗发布研报称，在中国联塑(02128)业绩缄默期前与公司CFO及副CFO接洽。该行 降联塑2026至28年盈测介乎11%至18%，反映非核心项目减值。不过，其内地核心业务呈现企稳迹象， 住宅业务的拖累减少，并被非住宅业务如农业、工业、医疗及市政等业务强劲增长所抵销。该行以预测 今年市盈率9倍为估值基础(较历史均值高0.5个标准差)，目标价相应由6.5港元升至7港元，评级"买 入"。 花旗认为，联塑海外渠道业务有望成为未来增长的主要驱动力，今年销售增幅料逾五成。该行料联塑去 年下半年核心纯利同比跌10%至9.38亿元人民币，按半年则跌13%，并料下半年净利润率由去年上半年 的8.7%微降至7.4%。该股近期在正面情绪下累升约20%，认为如有任何回调将属入市机会。不过，在中 国基建产业链的选股顺序上，该行首选中联重科(01157)，随后为杭叉集团(603298.SH)，随后为联塑。 ...