Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research> Citi Cuts CHINA LESSO (02128.HK) TP to HKD6.2 on Margin Concerns Amid Oil Price Surge
Recommend 4 Positive 3 Negative 1 |
||||
|
||||
|
Citi issued a research report noting that it recently held an investor meeting with management of CHINA LESSO (02128.HK). The groups 2025 results fell short of expectations. Coupled with the recent surge in oil prices, the broker has turned more cautious on its gross margin outlook and therefore lowered its earnings forecasts for 2026 to 2027 by 30%. The TP was cut from HKD7 to HKD6.2, while the Buy rating was maintained. However, the broker prefers companies with higher yields or better earnings growth prospects in Chinas infrastructure sector, such as ZOOMLION (01157.HK) > HANGCHA GROUP (603298.SH) > CHINA STATE CONSTRUCTION INTERNATIONAL (03311.HK). The broker said that although the recent conflict between the US and Iran has driven oil prices sharply higher, management expects gross margin in 1Q26 to remain flat HoH compared with 2H25, supported by raw material restocking. Demand momentum had already been recovering in the three months before the conflict (i.e., from last October to this January). Overseas pipeline business will be the key growth driver. (ec/u) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
