02 September 2024
Operating against the backdrop of volatile market environment and subdued property sector in China, China Lesso’s turnover was down by 11.3% YoY to Rmb13.6bn, while net profit decreased by 30.2% YoY to Rmb1.0bn in 1H24. The drop in net profit was mainly due to the decrease in turnover and in the share of profit of associates of Rmb117.4m in 1H24. GPM in 1H24 has eased down marginally by 0.3ppt to 27.5% mainly due to decrease in sales volume of plastic piping systems. China remained as the core market by contributing 90.2% of the total sales in 1H24, of which Southern China accounting for 44.7% of 1H24 revenue.
CROSBY Research – China Lesso (2128 HK/ BUY): New businesses encountered headwinds in 1H24