CHINA LESSO(HK:02128) Di Yi Cai Jing·2025-04-14 07:32Core Viewpoint - The global economic landscape is becoming increasingly complex, but China's economy remains resilient, supported by proactive macroeconomic policies, with a GDP growth of 5.0% last year. China Lesso, a leading player in the plastic pipe industry, reported solid performance with a revenue of 27.026 billion yuan and a profit attributable to shareholders of 1.684 billion yuan, while proposing a final dividend of 0.20 HKD per share to reward shareholders [1][4]. Group 1: Company Performance - China Lesso achieved a total revenue of 27.026 billion yuan in the last fiscal year, with a profit attributable to shareholders of 1.684 billion yuan [1][4]. - The company’s plastic pipe system business generated revenue of 22.819 billion yuan, accounting for 84.4% of total revenue, an increase from 79.6% in 2023 [5]. - The average selling price of plastic pipe system products was 9,191 yuan per ton, with a gross margin of 28.7%, slightly up from 28.5% in 2023 [5]. Group 2: Strategic Focus - China Lesso's strategy is centered around five key themes: focus, deep cultivation, intelligent manufacturing, innovation, and international expansion, which are aimed at enhancing its core pipe business and driving high-quality growth [1][4]. - The company is leveraging new technologies such as artificial intelligence and 5G to upgrade its manufacturing capabilities, with an annual design capacity of 3.29 million tons and a capacity utilization rate of approximately 76.4% [5]. Group 3: Market Environment and Opportunities - The macroeconomic environment is expected to continue evolving, with anticipated government policies aimed at boosting domestic demand to counter external risks, particularly benefiting the construction and building materials sectors [1][7]. - Infrastructure investment in China grew by 4.4% last year, with significant increases in railway and water management investments, which are expected to support demand for plastic pipes [7][8]. - China Lesso is actively adjusting its customer base and deepening partnerships with government and major state-owned enterprises, while also expanding its overseas market presence in countries like Indonesia, Thailand, and Vietnam [6][8]. Group 4: Financial Health - China Lesso maintains a healthy balance sheet with total equity of 24.415 billion yuan and cash and bank deposits of 6.643 billion yuan, providing sufficient funds for future development [8]. - The company is well-positioned to capitalize on market opportunities during industry transformations, with a focus on strengthening its core pipe business and expanding market share [8][9].