Investment Rating - The report maintains a "Buy" rating for the company with a target price of 3.97 HKD [2][4][6] Core Insights - The company reported a revenue of 31 billion CNY in 2023, a slight increase of 0.4% year-on-year, while the net profit attributable to shareholders decreased by 5.9% to 2.4 billion CNY [1][6] - Despite a decline in revenue from major products, the company saw an increase in sales volume and gross margin, with total product sales reaching 2.65 million tons, up 10.6% year-on-year [1] - The infrastructure investment, particularly in water conservancy projects, is expected to support demand for related pipeline products in 2024, contributing to stable performance [1][6] Financial Summary - The company’s EPS for 2023-2025 is projected to be 0.76, 0.73, and 0.77 CNY respectively, reflecting a downward adjustment from previous estimates due to ongoing pressures in the real estate sector [2][6] - The average selling price of plastic pipeline systems decreased by 13.2% to 9,289 CNY per ton, while the gross margin for these systems increased by 1 percentage point to 28.5% due to lower raw material prices [1][6] - The company is expected to maintain stable performance in 2024, with infrastructure investment remaining a key growth driver [1][6]

港股公司报告 | 公司点评 中国联塑（02128） 证券研究报告 2024年04月 02日 投资评级 业绩短暂承压，多元化业务布局前景可期 行业 地产建筑业/建筑 6个月评级 买入（维持评级） 业绩短暂承压，看好公司中长期发展潜力 当前价格 3.3港元 公司发布23年年报，全年实现营收308.68亿，同比+0.3%；归母净利润为 目标价格 4.62港元 23.68亿，同比-6.1%。其中，23H2 下半年实现营收155.71亿，同比-1.93%， 归母净利润为8.7亿，同比-28.6%。利润下降主要系公司23 年对客户应收 基本数据 账款计提减值以及借款利率上升致使利息支出增长，财务费用同比 港股总股本(百万股) 3,102.42 +63.38%，考虑到目前地产下行压力，我们将公司 24-25 年归母净利润从 港股总市值(百万港元) 10,237.98 30.95/34.90亿调整为26.0/29.4亿，预估26年归母净利润为33.6亿元，对 应PE为4.0/3.6/3.2 倍，考虑到港股流动性较弱，给予公司24年6 倍PE， 每股净资产(港元) 8.37 对应目标价为4.62港元，维持“买入”评级。 资产负 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a slight increase in revenue for 2023, achieving 30.87 billion with a year-on-year growth of 0.3%, while net profit attributable to shareholders decreased by 6.1% to 2.37 billion [4]. - The core business of plastic pipes saw a revenue decline of 4% to 24.6 billion, while the building materials and home improvement segment grew by 5% to 2.8 billion, and other businesses increased by 40.3%, accounting for 79.6%, 9.2%, and 11.2% of total revenue respectively [4]. - The company experienced a 10.6% increase in sales volume to 2.6467 million tons, but the average selling price dropped by 13.2% to 9,300 per ton [4]. - The overall gross margin decreased by 0.5 percentage points to 26.3%, with the gross margin for pipe business improving by 1.0 percentage point to 28.5% [4]. Summary by Sections Revenue and Profitability - The company achieved a total revenue of 30.87 billion, with a slight increase of 0.3% year-on-year, while net profit decreased by 6.1% to 2.37 billion [4]. - The gross margin for the year was 26.3%, down 0.5 percentage points, with a notable improvement in the pipe business gross margin to 28.5% [4]. Business Segments - The core business of plastic pipes generated 24.6 billion, a decline of 4%, while building materials and home improvement revenue grew by 5% to 2.8 billion [4]. - Other business segments saw a significant growth of 40.3%, contributing to 11.2% of total revenue [4]. Sales Volume and Pricing - The company sold 2.6467 million tons of products, an increase of 10.6% year-on-year, but the average selling price fell by 13.2% [4]. - The sales volume for PVC and non-PVC pipes grew by 9.3% and 14.5% respectively, while average prices for PVC and non-PVC pipes decreased by 18.3% and 6.9% respectively [4]. Cost Structure - The company’s overall expense ratio increased by 1 percentage point to 18.3%, with financial, management, and sales expenses rising by 1.4, 0.3, and 0.4 percentage points respectively [4]. - The net profit margin for the year was 7.7%, down 0.5 percentage points, impacted by an impairment loss of 860 million [4].

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 CHINA LESSO GROUP HOLDINGS LIMITED 中國聯塑集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2128） 截 至2023年12月31日 止 年 度 全 年 業 績 公 告 董 事 會 欣 然 宣 佈 本 集 團 截 至2023年12月31日 止 年 度 的 綜 合 財 務 業 績。 | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------|-------| | | | ...

LESS ○联塑 CHINA LESSO GROUP HOLDINGS LIMITED 中 國 聯 塑 集 團 控 股 有 限 公 司 Incorporated in the Cayman Islands with limited liability 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 | --- | --- | --- | --- | |---------------------------|-------|-------|-------| | | | | | | Stock Code 股份代號: 2128 | | | | | | | | | | | | | | | | | | | | HHHH | | | | | IIIIIIIi 65 184 | | | | | Interim Repo 中期報告 | | | | . CONTENTS 目 | --- | --- | --- | |-------|--------------------------------------------------------|------------------------------| | | | ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 CHINA LESSO GROUP HOLDINGS LIMITED 中國聯塑集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2128） 截 至2023年6月30日 止 六 個 月 中 期 業 績 公 告 董 事 會 欣 然 宣 佈 本 集 團 截 至2023年6月30日 止 六 個 月 的 綜 合 財 務 業 績。 | --- | --- | --- | |-------|-------------------------------------------------------------------------------------------------------|-------------- ...

Financial Performance - Revenue decreased by 4.0% to RMB 30,767,211,000 in 2022 compared to RMB 32,057,584,000 in 2021[8] - Gross profit declined by 2.4% to RMB 8,241,423,000 in 2022 from RMB 8,447,693,000 in 2021[8] - Profit for the year fell by 16.7% to RMB 3,190,424,000 in 2022 from RMB 3,807,282,000 in 2021[8] - Basic earnings per share decreased by 17.2% to RMB 0.82 in 2022 from RMB 0.99 in 2021[8] - Total dividend dropped by 21.1% to HK 30 cents in 2022 from HK 38 cents in 2021[8] - Total revenue for 2022 was RMB30,767 million, a year-on-year decrease of 4.0%[14] - Profit attributable to owners of the Company decreased by 17.3% to RMB2,517 million in 2022[14] - Gross profit for 2022 was RMB8,241,423 thousand, compared to RMB8,447,693 thousand in 2021[10] - Net profit margin decreased to 8.2% in 2022 from 9.4% in 2021[182] - Net profit attributable to the company's owners decreased by 17.3% year-on-year to RMB 2.517 billion, with a net profit margin of 8.2%[185] Assets and Liabilities - Total assets increased to RMB 58,952,604,000 in 2022 from RMB 54,483,189,000 in 2021[8] - Total debts rose by 12.8% to RMB 20,614,088,000 in 2022 from RMB 18,275,903,000 in 2021[8] - Net debt grew by 24.7% to RMB 13,252,318,000 in 2022 from RMB 10,629,654,000 in 2021[8] - Gearing ratio increased to 47.7% in 2022 from 45.6% in 2021[8] - Net debt to equity ratio rose to 58.7% in 2022 from 48.7% in 2021[8] - Total assets increased to RMB58,952,604 thousand in 2022 from RMB54,483,189 thousand in 2021[11] - Non-current assets grew to RMB34,959,559 thousand in 2022, up from RMB30,131,266 thousand in 2021[11] Strategic Expansion and Partnerships - China Lesso held a groundbreaking ceremony in Gansu, marking the official construction of Gansu Lesso[16] - The Group's first extrusion workshop in Indonesia was put into operation in August[16] - China Lesso entered into a strategic cooperation agreement with China Construction Sixth Engineering Division Corp., Ltd.[17] - The Group signed a strategic cooperation agreement with Foshan Construction Development Group Co., Ltd. for comprehensive cooperation in building materials, raw material procurement, new energy, and green construction[17] - China Lesso established a new production base and distribution center in Gansu, marking a strategic expansion in the Northwest region[18] - The first phase of the extrusion workshop in Indonesia was officially put into production, accelerating localization and market expansion in Southeast Asia[18] - China Lesso signed strategic cooperation agreements with China Construction Sixth Engineering Bureau and Foshan Construction Development Group for comprehensive collaboration in building materials, green energy, and green construction[19] - The Group continued to expand its strategic partnerships with government departments and state-owned enterprises in the infrastructure sector[184] Brand and Corporate Development - China Lesso proposed a new brand positioning upgrade with the slogan "Envisioning the Better, Building the Future" to reflect low-carbon, environmentally friendly, and high-quality development[18] - China Lesso ranked 375th in the 2022 Fortune China 500 list and received multiple awards including "2022 Capital Market Influential Enterprise" and "Top 5 Listed Companies with Investment Potential"[18] - China Lesso completed a brand strategy upgrade and aims to expand into building materials, home improvement, environmental protection, and new energy sectors[167] - China Lesso's mission is to improve and enhance living quality, focusing on social responsibility, corporate governance, and sustainable urban development[171] Management and Leadership - Mr. Lai Zhiqiang is responsible for the production and technical management of the Group with 26 years of experience in the plastic pipe industry[29][32] - Mr. Kong Zhaocong oversees the China sales of the Group with 29 years of experience in the plastic pipe industry[30][32] - Mr. Chen Guonan manages the production and engineering of certain companies within the Group with 33 years of experience in the plastic pipe industry[31][32] - Dr. Lin Shaoquan leads the research and development and overseas sales of the Group with 20 years of experience in the plastic pipe industry[33] - Mr. Huang Guirong is responsible for the overall management of the factories and production facilities of the Group with 26 years of experience in the plastic pipe industry[34] - Mr. Luo Jianfeng has approximately 30 years of experience in accounting and is currently an executive director of Xingfa Aluminium Holdings Limited[35] - Dr. Lin Shaoquan, aged 47, is responsible for the company's R&D and overseas sales, with over 20 years of experience in the plastic pipe industry[36] - Mr. Huang Guirong, aged 47, oversees the company's factory and production equipment management, with 26 years of experience in the plastic pipe industry[36] - Mr. Luo Jianfeng, aged 51, has over 30 years of accounting experience and serves as an executive director of Xingfa Aluminum Holdings Limited (stock code: 98)[36] - Mr. Lin Dewei, aged 62, has over 25 years of legal experience and is a non-executive director of HC Group Inc. (stock code: 2280)[38] - Mr. Wong Kwok Ho Jonathan, aged 49, specializes in civil and criminal litigation and is a member of The Chartered Institute of Arbitrators[38] - Ms. Lan Fang, aged 47, has over 25 years of experience in social organization management and the construction and decoration materials industry[38] - Dr. Tao Zhigang, aged 57, is HSBC Professor of Global Economy and Business Strategy at the University of Hong Kong[39] - Mr. Cheng Dickson, aged 53, is an independent director of Magnum Opus Acquisition Limited (Ticker: OPA.U) and general manager at The Hong Kong and China Gas Company Limited (stock code: 3)[40] - Mr. Cheng Dickson has over 25 years of experience in the investment banking industry[41] - Mr. Liu Guanggen, aged 41, is the CFO of the Group, responsible for overall financial and accounting affairs, with a master's degree in engineering from Chongqing University[45][47] - Mr. Kwan Chi Wai Samuel, aged 45, is the company secretary with over 20 years of experience in accounting, auditing, and finance, holding a master's degree in business administration from the University of South Australia[46][47] - Ms. Lu Jiandong, aged 53, is an independent non-executive director with extensive investment banking experience, holding an MBA from The Wharton School of the University of Pennsylvania[43][44] - Dr. Tao Zhigang, aged 57, is an independent non-executive director with a Ph.D. in Economics from Princeton University and serves as a professor at the University of Hong Kong[42] - Mr. Zheng Dishun, aged 53, is an independent non-executive director with over 25 years of investment banking experience, holding a master's degree in applied finance from Macquarie University[42] - The Board currently comprises 15 directors, including 10 executive directors and 5 independent non-executive directors[50] - Mr. Wong Luen Hei ceased to be the chairman of the Nomination Committee, replaced by Ms. Lu Jiandong effective from 30 August 2022[52] - The chairman and chief executive roles are held by Mr. Wong Luen Hei and Mr. Zuo Manlun, respectively, to segregate Board management from daily operations[52] - Independent non-executive directors provide expertise and ensure balanced interests, participating in Board and committee meetings[55] - The Board is responsible for corporate governance duties, including policy development, compliance monitoring, and risk management[58] - Ernst & Young was appointed as the independent auditor for the interim and annual results for 2022[56] - Directors are responsible for preparing consolidated financial statements in accordance with Hong Kong Financial Reporting Standards[56] - The Board ensures all directors are adequately briefed and receive timely, reliable information for decision-making[52] - Directors appointed to fill vacancies hold office until the first AGM and are eligible for re-election[52] - The Board reviewed and monitored the effectiveness of the Company's risk management and internal control systems in 2022[59] - The Board convened eight meetings in 2022 to review operating performance, funding requirements, and market conditions[60] - The Company provided two seminars in 2022 on "Climate risk knowledge and awareness" and "Environmental, social and governance" to Board members[69] - The company secretary received no less than 15 hours of relevant professional training during the reporting period[76] - The Audit Committee convened two meetings in 2022 to review the annual report, annual results announcement, and other financial documents[80] - The Group paid RMB 11.33 million in total to Ernst & Young for audit and non-audit services in 2022, including RMB 7.85 million for annual audit services[83] - Ernst & Young has been the Company's auditor for 13 years since 2010, with certifications provided by Helena Lee Mee Kwan and Lau Kin Yu[87] - The Remuneration Committee is responsible for formulating the Company's remuneration policy and incentive mechanism, and conducting appraisals for directors and senior management[88] - The Audit Committee reviewed the annual report, annual results announcement, and sustainable development report for the year ended 31 December 2022, recommending approval to the Board[81] - The Remuneration Committee convened one meeting in 2022 to assess the performance of directors and senior management, and recommended remuneration packages[93] - Two senior management members received remuneration of less than RMB1 million in 2022[93] - The Nomination Committee comprises six members, including Ms. Lu Jiandong as chairlady, and is responsible for recommending candidates for directors and senior management[93] - The Nomination Committee convened two meetings in 2022, reviewed the Board's structure, and recommended retiring directors for re-election at the AGM[99] - The company ensures the independence of the Board through annual reviews and confirmation from independent non-executive directors under Rule 3.13 of the Listing Rules[100] - The Board comprises 15 directors, including 3 female directors, achieving the target of at least one female director[109] - Women employees constitute 31.2% of the Group's workforce and 12.4% of middle or above managerial level positions[111] - The Board diversity policy aims to achieve diversity through factors such as gender, age, cultural background, and professional experience[104] - The Company has established a risk management project team to assess and communicate the Group's risk profile and material risks[115] - The Board believes the current gender ratio in the workforce is appropriate for the Group's development[111] - The Board has reviewed and confirmed the effectiveness of the Group's risk management and internal control system[115] - The Nomination Committee recommends the re-election of retiring directors based on the Board diversity policy[101] - The Board diversity targets include having at least one director with risk management expertise and industry knowledge, both of which have been achieved[107] - The Board includes one-third independent non-executive directors to promote critical review and control of the management process[109] - The Group's risk management and internal control system is aligned with COSO standards to provide reasonable assurance against material misstatement or loss[114] - The Board is responsible for the effectiveness of the overall risk management, determining the overall objective, risk appetites, and risk tolerance for corporate risk management[119] - The Audit Committee reviews the establishment and planning of the comprehensive risk management system and submits the annual comprehensive risk management report to the Board[119] - The risk management project team is responsible for establishing and amending the Company's risk management policies and mechanisms[121] - The risk management project team formulates and submits the annual risk management work plan to the Board and the Audit Committee for review[121] - The internal control team assists the Group's risk management work and formulates internal control plans based on risk assessment results[125] - The internal audit department assists the Group's risk management work and formulates internal audit plans based on risk assessment results[125] - The risk management program includes collecting first-hand information, analyzing and assessing risks, proposing risk management strategies, and supervising the implementation of risk management works[127] - The Group has established a comprehensive risk management process led by the Risk Management Project Team, assisted by the Internal Audit Department and Internal Control Group[128] - The Group faces material risks including macroeconomic risks, inappropriate market competition strategies, raw material price fluctuations, policy adjustments, cybersecurity, COVID-19, and climate change risks[133][134] - Macroeconomic risks arise from economic volatility and inflation pressure, with measures including reviewing management strategies and mechanisms for macroeconomic risks[134] - Risks of inappropriate market competition strategies stem from competition strategy formulation and client information collection, with measures including reviewing market competition strategy mechanisms[136] - Raw material price fluctuation risks are influenced by refining capacity shortages, manufacturer power and labor cost changes, and resin price changes, with measures including clear risk management strategies and mechanisms[137] - Policy adjustment risks include environmental, urbanization, water projects, and real estate policies, with measures including reviewing management strategies and mechanisms for policy-related risks[138] - The Group’s senior management supervises first-hand risk information collection, risk assessment, risk management strategies, and solution implementation[132] - The Risk Management Project Team conducts annual reviews and examinations of risk management implementation across departments and business units[132] - The Group ensures timely, accurate, and complete communication of risk management information across departments and business units[131] - Risk management measures include collecting and internally releasing information on raw material price fluctuations and policy changes through established channels[137][138] - The company has established a dual-active and duplication system for intra-city and inter-city data centers to enhance cybersecurity[141] - The company has developed internal communication software to manage and mitigate cybersecurity risks[141] - The company has strengthened its environmental management by improving energy resource efficiency and waste discharge control[141] - The company has formulated a whistleblowing policy allowing anonymous reporting of financial misconduct and fraud[142] - The company has proposed amendments to its memorandum and articles of association, approved by shareholders in June 2022[144] - The company has established a system for handling external inquiries, with senior executives authorized as spokespersons[142] - The company has committed to green operations and actively promotes the concept of green development to the public[141] - The company has set up an anti-fraud control unit to investigate reported cases of misconduct and ensure fair treatment[142] - The company has implemented guidelines for epidemic prevention and control to ensure orderly resumption of work and production[141] Market and Industry Trends - China's GDP growth rate in 2022 was 3.0%, reaching approximately RMB 121 trillion[160] - Infrastructure investment in 2022 increased by 9.4% year-on-year, focusing on traditional infrastructure such as transportation, water conservancy, and municipal projects[161] - The real estate industry faced unprecedented challenges due to the Covid-19 pandemic and economic downturn, leading to sluggish sales and debt defaults among developers[163] - The Central Government introduced supportive policies for the real estate industry, including interest rate cuts and RRR reductions[163] - The PRC government is actively promoting green and low-carbon circular development to achieve carbon emission peak and carbon neutrality targets[165] - China Lesso is committed to green, low-carbon, and high-quality development to support China's 2030 carbon emission peak and 2060 carbon neutrality goals[169] - The Group has integrated green concepts into its production and office activities, advocating paperless office and reducing resource consumption[170] Operational Performance - Total revenue for 2022 was RMB30,767 million, a decrease of 4.0% compared to RMB32,058 million in 2021[173] - Southern China contributed 50.7% of total revenue in 2022, down from 53.1% in 2021[174] - Revenue from outside China increased by 79.2% to RMB2,011 million in 2022[173] - Plastic piping systems accounted for 83.2% of total revenue in 2022, a decrease from 85.6% in 2021[175] - Gross profit margin improved to 26.8% in 2022 from 26.4% in 2021[179] - EBITDA increased by 1.2% year-on-year to RMB5,786 million in 2022[182] - The Group recommended a final dividend of HK30 cents per share for 2022, up from HK26 cents per share in 2021[183] - The Group's EBITDA increased by 1.2% year-on-year to RMB 5.786 billion, with an EBITDA margin of 18.8%[185] - The plastic piping systems business recorded revenue of RMB 25.607 billion, accounting for 83.2% of the Group's total revenue[191] - Sales volume of the plastic piping systems decreased by 6.1%, with PVC products sales volume down 4.2% to 1,776,304 tonnes and non-PVC products down 11.4% to 616,069 tonnes[193] - Revenue from PVC products decreased by 7.5% to RMB 15.675 billion, while non-PVC products revenue decreased by 5.5% to RMB 9.932 billion[193] - The average selling price of the plastic piping system decreased by 0.6% to RMB 10,704 per tonne, with a gross profit margin of 27.5%[194] - Revenue from Southern China decreased by 9.0% to RMB 12.839 billion, accounting for 50.1% of total revenue[189] - Revenue from outside China increased by 33.8% to RMB 1.018 billion, accounting for 4.0% of total revenue[189] - Revenue from water supply applications decreased by 3.8% to RMB 9.968 billion, accounting for 38.9% of total revenue[190] - Revenue from power supply and telecommunications applications decreased by 12.4% to RMB 4.206 billion, accounting for 16.4% of total revenue[190] - The Group's annual designed capacity

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 CHINA LESSO GROUP HOLDINGS LIMITED 中國聯塑集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2128） 截 至2022年12月31日 止 年 度 全 年 業 績 公 告 董 事 會 欣 然 宣 佈 本 集 團 截 至2022年12月31日 止 年 度 的 綜 合 財 務 業 績。 | --- | --- | |---------------------------------------------------------------------------------------------------------|-------| | | | | 摘 要 | | | 與 ...