2128 (China Lesso Group Holdings Ltd) vs Hang Seng (Hong Kong) Comparison

2128

Hang Seng (Hong Kong)

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2128

Hang Seng (Hong Kong)

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2128

Hang Seng (Hong Kong)

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Hang Seng (Hong Kong)

2128

0IRN

CARR

JCI

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China Lesso Group Holdings Ltd
Glance View

Market Cap

10.2B HKD

Industry

Building

In the dynamic industrial landscape of China, China Lesso Group Holdings Ltd. has emerged as a formidable player, transforming the manufacturing and distribution of building materials and home improvement products. Established in 1986, the company has leveraged China's robust construction and urbanization efforts to expand its footprint across Asia and beyond. As a key supplier of a wide variety of products, including pipes, fittings, sanitary ware, and other construction-related goods, China Lesso's operations are deeply integrated into the building industry. These products are essential components in both residential and commercial constructions, where the demand for reliability and quality fuels the company's growth. China Lesso's business model revolves around its extensive distribution network and a well-diversified product line which ensures a steady revenue stream. Leveraging its sophisticated production facilities, the company maintains control over the manufacturing process, enhancing quality while optimizing costs. This efficiency, paired with a strategic focus on innovation and sustainability, places China Lesso in an advantageous position to meet the evolving needs of the construction sector. The company generates revenue by capitalizing on its ability to supply high-quality, cost-effective products to a broad customer base, ranging from large developers to individual consumers, both within China and in export markets. By continuously adapting to market trends and consumer preferences, China Lesso sustains its competitive edge in the global building materials arena.

View China Lesso Group Holdings Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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FR		Compagnie de Saint Gobain SA PAR:SGO	Add
JP		Daikin Industries Ltd TSE:6367	Add
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2128

vs

Hang Seng (Hong Kong)

Stocks Performance
2128 vs Hang Seng (Hong Kong)

Performance Gap
2128 vs Hang Seng (Hong Kong)

Performance By Year
2128 vs Hang Seng (Hong Kong)

Competitors Performance
China Lesso Group Holdings Ltd vs Peers

China Lesso Group Holdings Ltd
Glance View

Company

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2128 vs Hang Seng (Hong Kong)

Stocks Performance 2128 vs Hang Seng (Hong Kong)

Performance Gap 2128 vs Hang Seng (Hong Kong)

Performance By Year 2128 vs Hang Seng (Hong Kong)

Competitors Performance China Lesso Group Holdings Ltd vs Peers

China Lesso Group Holdings Ltd Glance View

Company

Help

Tools

Stocks

2128

vs

Hang Seng (Hong Kong)

Stocks Performance
2128 vs Hang Seng (Hong Kong)

Performance Gap
2128 vs Hang Seng (Hong Kong)

Performance By Year
2128 vs Hang Seng (Hong Kong)

Competitors Performance
China Lesso Group Holdings Ltd vs Peers

China Lesso Group Holdings Ltd
Glance View