--- title: "Understanding the Market | CHINA LESSO surged nearly 7% during the session, with a cumulative increase of over 50% this year. The prices in the consumer building materials industry are expected to recover moderately" type: "News" locale: "en" url: "https://longbridge.com/en/news/276851094.md" description: "China Lesso rose nearly 7% during the session, with a cumulative increase of over 50% this year. As of the time of writing, it is up 3.91%, priced at HKD 6.91, with a trading volume of HKD 113 million. China International Capital Corporation (CICC) released a research report stating that prices in the consumer building materials industry are expected to recover moderately, with some leading sectors' gross margins potentially improving marginally. Recently, leading companies have successively issued price increase notices in various sub-sectors such as waterproofing, gypsum boards, and municipal pipelines. The basis for the price increase is judged to include supply optimization; upstream raw materials are mostly chemical products, and since the beginning of the year, the price center has shifted upward, including PVC, emulsions, etc. The firm is optimistic about the trend of price recovery in the industry, which may lead to marginal profit recovery for leading companies. They recommend paying attention to China Lesso and others. Citigroup previously stated that it had contacted the company's CFO and Deputy CFO before the performance blackout period, noting that the core business in mainland China shows signs of stabilization, with reduced drag from residential business offset by strong growth in non-residential sectors such as agriculture, industry, healthcare, and municipal services. The firm bases its valuation on a forecasted price-to-earnings ratio of 9 times for this year, raising the target price from HKD 6.5 to HKD 7, with a rating of \"Buy.\"" datetime: "2026-02-25T07:49:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276851094.md) - [en](https://longbridge.com/en/news/276851094.md) - [zh-HK](https://longbridge.com/zh-HK/news/276851094.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276851094.md) | [繁體中文](https://longbridge.com/zh-HK/news/276851094.md) # Understanding the Market | CHINA LESSO surged nearly 7% during the session, with a cumulative increase of over 50% this year. The prices in the consumer building materials industry are expected to recover moderately According to Zhitong Finance APP, China Lesso (02128) rose nearly 7% during the session, with a cumulative increase of over 50% this year. As of the time of publication, it was up 3.91%, priced at HKD 6.91, with a transaction volume of HKD 113 million. CICC released a research report stating that the prices in the consumer building materials industry are expected to recover moderately, and the gross margins of leading companies in some segments may improve marginally. Recently, leading companies have issued price increase notices in various sub-sectors, such as waterproofing, gypsum boards, and municipal pipelines. The basis for price increases is judged to include supply optimization; upstream raw materials are mostly chemical products, and since the beginning of the year, the price center has shifted upward, including PVC, emulsions, etc. The firm is optimistic about the trend of price recovery in the industry and the marginal recovery of profits for leading companies. They recommend paying attention to China Lesso and others. Citi previously stated that the firm engaged with the CFO and Deputy CFO of China Lesso before the company's earnings blackout period, noting that its core business in mainland China shows signs of stabilization, with reduced drag from residential business, offset by strong growth in non-residential sectors such as agriculture, industry, healthcare, and municipal services. The firm based its valuation on a projected price-to-earnings ratio of 9 times for this year, raising the target price from HKD 6.5 to HKD 7, with a rating of "Buy." ### Related Stocks - [E Fund CSI All Share Building Materials ETF (159787.CN)](https://longbridge.com/en/quote/159787.CN.md) - [CHINA LESSO (02128.HK)](https://longbridge.com/en/quote/02128.HK.md) - [Guotai CSI All Share building Materials ETF (159745.CN)](https://longbridge.com/en/quote/159745.CN.md) - [Fullgoal CSI All Share Building Materials ETF (516750.CN)](https://longbridge.com/en/quote/516750.CN.md) ## Related News & Research - [China Lesso to Overhaul Corporate Charter to Meet New Hong Kong Listing Rules](https://longbridge.com/en/news/281078717.md) - [China Glass Weighs RMB1.5 Billion Convertible Bond to Ease Debt Load](https://longbridge.com/en/news/281101256.md) - [China Tianrui Cement Delays 2025 Results Amid Probe Into Coal Prepayments](https://longbridge.com/en/news/280952656.md) - [BBMG Books Significant Asset Impairment Provisions to Reflect 2025 Financial Position](https://longbridge.com/en/news/281082770.md) - [China National Building Material Reshuffles Board Secretariat and Authorised Representatives](https://longbridge.com/en/news/281055247.md)