China Lesso Group Holdings Ltd (02128.HK) saw its share price plunge more than 7% in Thursday morning trade, extending recent losses as investors digested weaker-than-expected interim results. The stock was last changing hands at HK$3.69, down 7.4% at the time of writing, with turnover reaching HK$21.39 million.

According to the company's interim report for the six months ended June 30, 2026, revenue slipped 4.5% year-on-year to RMB 11.91 billion, while gross profit fell 2.5% to RMB 3.43 billion. Net profit for the period declined 25.6% to RMB 695 million, with profit attributable to shareholders dropping a steeper 30.53% to approximately RMB 727 million.

Analysts at Huatai Securities noted that while the company's plastic pipe products have seen some month-over-month price recovery, prices remain lower on a year-over-year basis. Moreover, demand for plastic pipes stayed weak during the first half, prompting the brokerage to cut its volume and average selling price assumptions for the segment. Consequently, Huatai has revised its net profit forecasts for 2026-2028 downward by 17%, 28%, and 28% respectively, to RMB 1.33 billion, RMB 1.59 billion, and RMB 2.00 billion, corresponding to earnings per share estimates of RMB 0.43, RMB 0.51, and RMB 0.64.