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China Lesso Group Holdings Ltd (2128) Fair Value & Analysis

Industrials · HK · Market cap HK$11.0B

CL China Lesso Group Holdings Ltd 2128 · HK
PriceHK$4.01
Fair ValueHK$8.43
Upside+110.2%
Quality51/100
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Weak Growth
Thin margins · 5.2% net margin
Low debt · generates free cash flow
4.95% dividend yield
Ranks above peers (10/14)
Narrow moat 35/100
Evidence: High Range HK$6.07 – HK$12.50 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$8.42 to HK$8.43 (+0.1%) since Aug 5, 2026. Share price +1.8% over the past month.

A solid business, screening 110% undervalued on our models.

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What matters now

  • The price is below even our cautious bear case (HK$6.07). The market is more pessimistic than our downside scenario.
  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$6.07 to HK$12.50) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$16.26 HK$2.30 Fair Value HK$8.43 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$2.30 – HK$16.26 · fair‑value band HK$6.07 – HK$12.50 · the HK$4.01 price screens below the HK$8.43 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Lesso Group Holdings Ltd (2128) currently trades at HK$4.01, while our model-based Fair Value estimate is HK$8.43, implying the stock looks roughly 110.2% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China Lesso Group Holdings Ltd generated revenue of HK$24.3B at a net margin of 5.2%. Revenue declined 12.1% year over year. It earns a return on equity of 4.9%. Net debt stands at HK$16.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$6.07 (bear case) to HK$12.50 (bull case); at HK$4.01, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 41% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -60% fair-value upside, at 110%, 2128 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$4.36 HK$7.16 HK$11.15 80
Residual Income HK$6.17 HK$6.28 HK$6.07 76
Rev-Margin DCF HK$4.72 HK$8.59 HK$13.00 74
All 26 models by family
DCF Models
FCF DCF HK$4.25 HK$7.40 HK$12.17 38
Owner Earnings HK$1.13 HK$2.58 HK$4.78 31
5Y Revenue Exit HK$4.72 HK$8.60 HK$13.54 39
5Y EBITDA Exit HK$7.53 HK$13.82 HK$21.16 41
5Y P/E Exit HK$4.21 HK$7.65 HK$11.22 38
10Y Revenue Exit HK$4.29 HK$7.78 HK$12.45 36
10Y EBITDA Exit HK$6.28 HK$11.40 HK$18.24 37
10Y P/E Exit HK$4.17 HK$7.12 HK$10.68 35
Earnings-Based
Graham-Dodd HK$2.78 HK$8.42 HK$11.17 54
Lynch FV HK$1.80 HK$2.57 HK$3.34 50
PEG = 1.0 HK$1.80 HK$2.57 HK$3.34 46
EPV HK$4.14 HK$5.09 HK$5.92 59
Dividend Discount
Gordon GGM HK$1.64 HK$3.42 HK$5.42 70
DDM Multi-Stage HK$1.64 HK$2.68 HK$3.59 61
Multiples
P/E Multiple HK$6.45 HK$8.60 HK$10.75 63
P/S Multiple HK$5.22 HK$6.96 HK$8.70 58
P/B Multiple HK$5.22 HK$6.96 HK$8.70 55
EV/EBIT HK$8.05 HK$11.25 HK$14.45 53
EV/EBITDA HK$10.66 HK$14.73 HK$18.79 54
EV/Revenue HK$5.31 HK$8.24 HK$11.18 43
Asset-Based
NCAV (Graham) HK$4.00 HK$5.36 HK$8.00 50
Growth DCF
Growth DCF HK$4.36 HK$7.16 HK$11.15 80
Rev-Margin DCF HK$4.72 HK$8.59 HK$13.00 74
Economic Profit
Residual Income HK$6.17 HK$6.28 HK$6.07 76
ROIC Compounder HK$4.14 HK$5.09 HK$5.92 72
Growth Earnings
Growth-Adj P/E HK$5.28 HK$7.54 HK$9.81 68

Widest divergence: Multiples (HK$8.24) versus Earnings-Based (HK$2.57). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$24.3B
Revenue growth (YoY) -12.1%
Net margin 5.2%
Return on equity 4.9%
Free cash flow HK$1.6B FY2025
P/E ratio 7.6 as of Jul 2, 2026
More key figures
Operating margin 12.0%
EPS (TTM) HK$0.3400
Dividend yield 5.0%
EPS growth (YoY) -66.4%
Net debt HK$16.4B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 49 · Market factors (momentum, volatility) 28

Profitability 27
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 38
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 49
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Lesso Group Holdings Limited, an investment holding company, manufactures piping and building materials in China and internationally.

Full company description

China Lesso Group Holdings Limited, an investment holding company, manufactures piping and building materials in China and internationally. The company provides pipeline systems solutions, such as municipal water supply, municipal drainage, power line communication for municipal engineering, and municipal heating; and water and power supplies, and drainage systems for building and residential. It offers water-saving irrigation, water conveyance, drainage, facility cultivation, aquaculture, pontoon systems, and water platforms for rural and agricultural; mining, chemicals, food, oil and gas, water supply, drainage, power, and heating fields for industry and commerce; firefighting pipelines; and gas pipes. In addition, the company is involved in manufacturing building materials; manufacture and sale of aluminum profiles, building materials machinery, monocrystalline silicon, fertilizer, and chemical products; property development; e-commerce platform; provision of first-mile international freight services and last-mile fulfillment services; manufacture and sale of mosaic tiles; holding sports events; property investment; power generation technical service; and internet data service. It offers its products primarily to independent distributors, civil contractors, property developers, utility companies, and municipalities. The company was founded in 1986 and is headquartered in Foshan, China. China Lesso Group Holdings Limited operates as a subsidiary of New Fortune Star Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Lesso Group Holdings Ltd reported revenue of HK$24.3B in FY2025 versus HK$32.1B in FY2021, a compound −6.7%/yr. Reported net income was HK$1.3B in FY2025, compounding −19.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$24.3B
Latest YoY
−10.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.8%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.2%
Revenue −6.7%/yr
FY21 HK$32.1B
FY22 HK$30.8B
FY23 HK$30.9B
FY24 HK$27.0B
FY25 HK$24.3B
Net income −19.8%/yr
FY21 HK$3.0B
FY22 HK$2.5B
FY23 HK$2.4B
FY24 HK$1.7B
FY25 HK$1.3B
Character of growth · EPS growth decomposed (2014-2025) +0.6 % p.a.
Revenue per share +6.4 pp

of which total revenue +6.3 pp · buybacks/dilution +0.1 pp

EBIT margin −1.7 pp
Tax rate +0.0 pp
Residual (interest, one-offs) −4.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Lesso Group Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2128

Peer Group

Building Products & Equipment · 245 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Below median
Fair Value upside +110% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 4% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 12% · Top 25%
Revenue growth -12% · Bottom 25%
Dividend yield (TTM) 5.0% · Top 25%
Debt / equity 0.46× · Higher than 75% of peers

Valuation Multiples vs Building Products & Equipment median · lower = cheaper

P/E (TTM) 7.6× · Cheaper than 75% of peers
P/B 0.45× · Cheaper than 75% of peers
P/S (TTM) 0.45× · Cheaper than median
P/FCF 0.9× · Cheaper than median
EV/EBITDA 3.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 0 · sector 11
PAST 19 · sector 23
HEALTH 77 · sector 94
DIVIDEND 99 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Building Products & Equipment stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Carrier Global Corporation CARR $63.08 $16.85 -73%
Compagnie de Saint-Gobain S.A SGO €84.24 €97.97 +16%
PT Impack Pratama Industri Tbk, IMPC 1,405 IDR 179.76 IDR -87%
NIBE Industrier AB NIBEB kr 38.91 kr 25.37 -35%
Beijing New Building Materials Public Limited 000786 ¥18.73 ¥31.73 +69%
Moon Environment Technology Co 000811 ¥42.22 ¥11.94 -72%
The Supreme Industries Limited SUPREMEIND ₹3,460 ₹1,376 -60%
Aditya Infotech Limited CPPLUS ₹3,899 ₹763.08 -80%

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Frequently asked questions

Is China Lesso Group Holdings Ltd (2128) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$8.43 versus a price of HK$4.01, about +110% (undervalued).
What is the fair value of 2128?
Our model-based fair value for China Lesso Group Holdings Ltd is HK$8.43 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$4.01.
What is the quality score of 2128?
China Lesso Group Holdings Ltd has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Lesso Group Holdings Ltd (2128)?
China Lesso Group Holdings Ltd reported trailing-twelve-month revenue of about HK$24.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2128?
The net profit margin of China Lesso Group Holdings Ltd is about 5.2%, meaning it keeps roughly 5.2% of revenue as net income. Based on the latest reported figures.
Does China Lesso Group Holdings Ltd pay a dividend?
China Lesso Group Holdings Ltd currently shows a dividend yield of about 4.95% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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