CHINA LESSO(02128) 东方证券·2024-04-22 02:32Investment 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]