China Lesso (02128) saw its share price increase by 5.26% before the midday break, currently trading at HK$6, with a turnover of HK$78.0044 million.

Huatai Securities released a research report stating that proactive real estate policies are still expected to accelerate the stabilization and recovery of the property market. Current property sector data are already largely reflected in the share prices and valuations of building materials stocks. Through increasing domestic market share, expanding overseas operations, and diversifying product categories, some listed companies have begun to show initial signs of revenue improvement. In the short term, the firm recommends focusing on balanced allocation opportunities between traditional cyclical and emerging tech-growth segments within the building materials sector, endorsing companies such as China Lesso.

Citigroup noted that it has lowered its profit forecasts for Lesso for 2026 to 2028 by 11% to 18%, reflecting impairments on non-core projects. However, the company's core domestic business is showing signs of stabilization, with reduced drag from the residential segment being offset by strong growth in non-residential businesses such as agricultural, industrial, medical, and municipal sectors. Citigroup believes that Lesso's overseas piping business is poised to become a major driver of future growth, with sales growth expected to exceed 50% this year.