Group 1 - China Lesso (2128.HK) saw its stock price rise by 6.16% to HKD 6.55, reaching a nearly three-year high since March 28, 2023, with a year-to-date increase of over 41%, significantly outperforming the Hang Seng Index, which rose over 5% in the same period [1] - The stock price has increased by 108% compared to the same period last year, when it closed at HKD 3.15 on February 7, 2022 [1] - CICC's report indicates a potential mild recovery in the consumer building materials sector, with leading companies in certain segments expected to see marginal improvements in profit margins due to price increases in waterproofing, gypsum boards, and municipal pipelines [1] Group 2 - Huatai Securities noted that positive real estate policies are likely to accelerate the stabilization of the real estate market, with current data reflecting in the stock prices and valuations of building materials companies [1] - Companies are improving their domestic market share, expanding overseas, and diversifying product categories, with some beginning to show signs of revenue improvement [1] - Citigroup reported that the core business of China Lesso is stabilizing, with reduced drag from residential business offset by strong growth in non-residential sectors such as agriculture, industry, healthcare, and municipal services [2] Group 3 - Citigroup raised its target price for China Lesso from HKD 6.5 to HKD 7, based on a forecasted price-to-earnings ratio of 9 times for this year, which is 0.5 standard deviations above the historical average, maintaining a "Buy" rating [2]

Group 1 - China Liansu (2128.HK) saw its stock price rise by 6.16% to HKD 6.55, reaching a nearly three-year high since March 28, 2023, with a year-to-date increase of over 41%, significantly outperforming the Hang Seng Index, which rose over 5% during the same period [1] - The stock price has increased by 108% compared to the closing price of HKD 3.15 on February 7, 2022 [1] - CICC's report indicates a potential mild recovery in the consumer building materials sector, with leading companies in certain segments expected to see marginal improvements in profit margins due to price increases in waterproofing, gypsum boards, and municipal pipelines [1] Group 2 - Huatai Securities noted that positive real estate policies are likely to accelerate the stabilization of the real estate market, with current data reflecting in the stock prices and valuations of building materials companies [1] - Companies are improving revenue through increased domestic market share, overseas business expansion, and product category diversification, with some showing signs of revenue improvement [1] - Citigroup reported that China Liansu's core business in mainland China is stabilizing, with reduced drag from residential business offset by strong growth in non-residential sectors such as agriculture, industrial, medical, and municipal [2]

Core Insights - The Chinese duct industry is transitioning from traditional construction accessories to high-tech, high-value key system components, characterized by expanding market size, highly differentiated competition, and technology-driven transformation [1][8] Industry Overview - Ducts, short for "ventilation ducts," are closed channel systems used in buildings or industrial systems to transport, distribute, and control air (or gas) flow [2] - The primary functions of ducts include achieving directed airflow for ventilation, temperature regulation, smoke and dust removal, material transport, or maintaining specific cleanliness standards [2] Market Size - The market size of the Chinese duct industry is projected to reach approximately 3.342 billion yuan in 2024, representing a year-on-year growth of 4.44% [1][8] - The demand for efficient ventilation systems is driven by policies promoting building energy retrofitting and carbon neutrality goals, with a surge in demand for ducts meeting specific cleanliness, corrosion resistance, and high airtightness requirements in high-end manufacturing sectors such as data centers and biomedicine [1][8] Industry Chain - The upstream of the duct industry includes raw materials such as galvanized steel plates, stainless steel plates, aluminum plates, and various insulation materials [4] - The midstream involves the production and manufacturing of ducts, while the downstream applications span commercial and public buildings, industrial facilities, data centers, cleanrooms, and residential buildings [4] Key Enterprises - The competitive landscape of the duct industry is characterized by a "large industry, small enterprises" model, with significant differentiation along technological and application lines [9] - China Liansu Group is a major player in the duct market, leveraging its large-scale production and nationwide sales network to extend its product lines into various duct materials [9] - Duken New Materials is recognized as a national-level specialized and innovative "little giant," focusing on flexible composite ducts and innovative solutions [10] Trends and Innovations - The future of ducts will evolve from "standardized transport carriers" to "multi-functional integrated components," driven by breakthroughs in material technology [11] - The industry will increasingly adopt environmentally friendly, high-performance composite materials and functional surface treatments to meet stringent hygiene standards in healthcare and laboratory settings [11] - Digital transformation will fundamentally change duct production and operation, with automation and digital twin technologies enhancing efficiency and monitoring capabilities [12] - The demand for highly specialized and customized duct solutions will rise, necessitating duct manufacturers to transition into deep scene solution providers [13]

Core Insights - The report indicates that the price of ordinary electronic cloth has exceeded expectations, with significant price increases observed in recent months, suggesting a sustained high demand in the market [12][13] - Shanghai's initiative to purchase second-hand homes for rental purposes is expected to boost the supply of rental housing and stimulate the construction materials market [13][14] - The construction materials industry is currently at a historical valuation low, with potential for recovery as demand stabilizes and supply-side improvements take effect [23][25] Group 1: Price Trends and Market Dynamics - The price of ordinary electronic cloth has seen cumulative increases of 1-1.2 RMB/m due to supply-demand imbalances and rising copper prices, indicating a long-term bullish trend [12] - The Shanghai government has launched a program to acquire second-hand homes for rental purposes, focusing on small-sized units, which is anticipated to enhance the supply of rental properties and invigorate the construction materials sector [13] - Recent data shows a recovery in second-hand home transactions, with significant year-on-year increases, suggesting a potential rebound in the real estate market [14][15] Group 2: Industry Fundamentals and Company Performance - The construction materials sector is experiencing a bottoming out phase, with various sub-sectors like cement and fiberglass showing signs of recovery, supported by supply-side adjustments and improved market conditions [23][25] - The report highlights that leading companies in the consumer building materials segment are demonstrating resilience, with improved revenue growth rates compared to the overall market, indicating strong operational capabilities [29] - Cement prices have recently decreased by 1%, but the overall market is expected to stabilize as companies implement price control measures and benefit from lower coal costs [25][26] Group 3: Investment Opportunities - The report suggests focusing on leading companies in the consumer building materials sector, such as Three Trees, Rabbit Baby, and Oriental Yuhong, which are well-positioned to benefit from the ongoing market recovery [23][25] - In the cement industry, companies like Huaxin Cement and Conch Cement are highlighted as potential investment opportunities due to their strong market positions and historical performance [25][26] - The fiberglass sector is also noted for its growth potential, with leading firms like China Jushi and Zhongtai Technology expected to capitalize on increasing demand for high-end electronic cloth [26][28]

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]