LETS HOLDINGS (002398.SZ)

Thursday

2:57 PM

Thesis: Recent declines in consumer sentiment and housing starts are raising concerns about future demand for construction materials, leading to a more cautious outlook.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$2.4B	$2.9B	$2.9B
Rev. Growth	-9.3%	+20.3%	+3.0%
EPS	$0.09	$0.31	$0.40
EPS Growth	+23.1%	+260%	+29.0%
P/E (fwd)	47.8×	13.3×	10.3×

★ Analysts see FY2026 revenue reaching $2.9B — +20.3% growth in a single year.

What Moves the Stock

1Demand for construction materials in urban development projects in China
2Fluctuations in raw material costs, particularly cement and aggregates
3Government infrastructure spending initiatives
4Changes in housing market dynamics affecting construction activity
5Ready-mixed concrete (approximately 60% of total revenue)
6Precast concrete products (approximately 30% of total revenue)
7Other construction materials (approximately 10% of total revenue)
8Urbanization and infrastructure development in China

FY2025 Snapshot

Revenue: $2.4B
Rev. Growth: -9.3%
Gross Margin: 23.0%
Op. Margin: 4.6%
Net Margin: 2.3%
Net Income: $54M
NI Growth: +9.9%
EPS: $0.09
1Y Return: -23.8%

002398.SZ Chart

My Notes

"Management noted, 'We are closely monitoring market conditions as consumer sentiment shifts, which could impact our sales in the near term.'"
Moat: Lets Holdings benefits from a strong distribution network and established relationships with key customers, providing a competitive edge.
value - the company's low price/book ratio of 0.8x may attract value-focused investors looking for undervalued opportunities.
Higher interest rates can increase financing costs for construction projects, potentially dampening demand for Lets Holdings' products…
Watch on earnings: Cement price index, Urban construction spending, Building permit issuance.

One Sentence Summary:

Lets Holdings: the story is balanced — demand for construction materials in urban development projects in china.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research note…

First read for a new ticker takes about 20–30 seconds while we build the analysis from the latest fundamentals, estimates, and intelligence. It's saved after this, so future visits are instant.