CHINA LESSO (02128) rose more than 7% in early trading, reaching HK$4.8 with a turnover of HK$71.79 million. The surge follows remarks by Zheng Shanjie, head of the National Development and Reform Commission, indicating that China plans to renovate and construct over 700,000 kilometers of underground pipelines during the "15th Five-Year Plan" period, generating investment demand exceeding RMB 5 trillion. This initiative is a key measure in advancing urbanization.

Huaxi Securities noted that CHINA LESSO stands to benefit from urban pipeline upgrades. Guotai Haitong Securities highlighted the company's successful transformation in pipeline sales, with rapid expansion in non-real estate and non-southern China markets. Its agricultural sector development is particularly strong.

The company has significantly reduced risks related to real estate receivables, with over 75% of high-risk developer receivables provisioned, and property-backed settlements progressing smoothly. Currently, CHINA LESSO trades at a dynamic P/E of around 4x, partly due to its Hong Kong listing. Despite low capacity utilization, its shift toward new energy has not substantially increased capital expenditures, keeping operational risks manageable.