CHINA LESSO (02128) rose more than 7% in early trading, gaining 6.53% to HKD 4.73 by the time of writing, with a turnover of HKD 29.08 million.

The surge follows remarks by Zheng Shanjie, head of the National Development and Reform Commission, highlighting plans to construct or renovate over 700,000 kilometers of underground pipelines during the "16th Five-Year Plan" period, with new investment demand exceeding RMB 5 trillion.

Guosheng Securities noted that enhanced debt resolution policies may alleviate fiscal pressure on local governments, potentially accelerating municipal engineering projects, including pipeline networks and seismic mitigation infrastructure.

Meanwhile, Guotai Haitong Securities reported that CHINA LESSO has successfully diversified its pipeline sales, expanding rapidly in non-real estate sectors and regions outside South China. The company has made significant progress in agricultural applications and has substantially provisioned over 75% of receivables from high-risk property developers, mitigating credit risks.

Currently trading at a forward P/E of around 4x—depressed by its Hong Kong listing—CHINA LESSO's shift toward new energy has not significantly increased capital expenditures amid low capacity utilization, keeping operational risks manageable.