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olivLaw · US equity research

Leishen Energy Holding Co., Ltd. LSE

Oil & Gas Field Machinery & Equipment · SIC 3533 · Vertical: Oil & Gas Field Machinery & Equipment (SIC 3533)

4.43USD−0.45% · 1 dayClose 04 Nov 2026

Leishen Energy Holding Co., Ltd. supplies clean-energy equipment and integrated solutions to the oil and gas industry, operating mainly in China and extending into Central Asia and Southeast Asia. Revenue fell 30.0% in fiscal 2025, as domestic demand weakened and customer concentration stayed high, which makes the shift toward international markets a central question for the company.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Leishen Energy Holding Co., Ltd. (LSE) stock was 4.43 USD (−0.45% on the day), with market capitalisation 75.4 m USD, P/E 55.4 on diluted EPS of 0.08 USD over the last 12 months, beta 0.82, 52-week range 3.20–5.68 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
75.4 m USD
shares as of 30 Sept 2025
P/E (TTM)
55.4
Diluted EPS TTM 0.08 · TTM to 30 Sept 2025
E/P (TTM)
1.81%
TTM to 30 Sept 2025
Dividend yield
unavailable
Beta (2y)
0.82
Volatility (1y) 85%
52-week range
3.205.68

Price history

Loading chart…

Technical reading

RSI (14)
43.9
weak (30–45)
Bollinger (20, 2)
4.21 – 4.95
in the lower half of the band · %B 0.30 · band width 16.3%
SMA 50 / 200
4.91 / 4.74
mixed trend
MACD (12, 26, 9)
-0.12 / -0.12
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−1.3%−1.1%−0.2 pp—
3 months−3.7%−0.5%−3.2 pp—
6 months−11.2%+4.4%−15.5 pp—
Year to date+1.4%+12.3%−10.9 pp—
1 year−15.5%+13.5%−29.0 pp+16.2%
3 yearsunavailable+76.4%unavailable+30.2%
5 yearsunavailable+63.7%unavailable—
Max drawdown (1y)
−43.7%
07 Apr 2026 → 03 Jun 2026
Max drawdown (5y)
−74.4%
19 Mar 2025 → 03 Jun 2026
Compound annual growth (5y)
unavailable
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 0 percentile of its own 1-quarter history (min 67.5, median 67.5, max 67.5; quarters with earnings only).

Fiscal years

Fiscal year2022202320242025
Revenue46.7 m73.1 m69.1 m48.3 m
Revenue YoYunavailable+56.4%−5.5%−30.0%
Net income5.7 m11.9 m8.1 m1.3 m
Net income YoYunavailable+107.2%−31.7%−84.5%
Diluted EPS0.370.770.520.08
Diluted EPS YoYunavailable+108.1%−32.5%−84.6%
net %12.2%16.2%11.7%2.6%
Free cash flow-7.2 m3.6 m14.4 m-3.7 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 30 Sept 2025

Cash
10.2 m USD
Financial debt
3.1 m USD
Net debt
-7.1 m USD
Equity
45.5 m USD
Total assets
69.3 m USD
Debt / equity
0.07x
Current ratio
2.54x
ROE
2.9%
ROA
1.8%
FCF margin
-7.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
73.1 m
2024
69.1 m
2025
48.3 m

SEC (XBRL)· 30 Jan 2026verified

Cost of revenue
2023
54.7 m
2024
53.0 m
2025
39.8 m

SEC (XBRL)· 30 Jan 2026verified

Gross profit
2023
18.4 m
2024
16.0 m
2025
8.5 m

SEC (XBRL)· 30 Jan 2026verified

Research & development
2023
158.7 k
2024
449.5 k
2025
247.2 k

SEC (XBRL)· 30 Jan 2026verified

Operating income
2023
11.9 m
2024
7.6 m
2025
-1.7 m

SEC (XBRL)· 30 Jan 2026verified

Depreciation & amortisation
2023
420.9 k
2024
519.0 k
2025
485.6 k

SEC (XBRL)· 30 Jan 2026verified

EBITDA
2023
12.3 m ≈
2024
8.1 m ≈
2025
-1.2 m ≈

SEC (XBRL)· 30 Jan 2026derived

Interest expense
2023
68.0 k
2024
57.0 k
2025
71.2 k

SEC (XBRL)· 30 Jan 2026verified

Pre-tax income
2023
12.4 m
2024
8.2 m
2025
769.6 k

SEC (XBRL)· 30 Jan 2026verified

Income tax
2023
729.5 k
2024
184.8 k
2025
-509.0 k

SEC (XBRL)· 30 Jan 2026verified

Net income
2023
11.9 m
2024
8.1 m
2025
1.3 m

SEC (XBRL)· 30 Jan 2026verified

Diluted EPS
2023
0.77
2024
0.52
2025
0.08

SEC (XBRL)· 30 Jan 2026verified

Weighted average diluted shares
2023
15.5 m
2024
15.5 m
2025
16.7 m

SEC (XBRL)· 30 Jan 2026verified

Balance sheet · USD

Cash
2023
4.6 m
2024
7.3 m
2025
10.2 m

SEC (XBRL)· 30 Jan 2026verified

Receivables
2023
30.7 m
2024
21.8 m
2025
15.3 m

SEC (XBRL)· 30 Jan 2026verified

Inventories
2023
7.9 m
2024
5.4 m
2025
3.7 m

SEC (XBRL)· 30 Jan 2026verified

Current assets
2023
58.8 m
2024
61.7 m
2025
59.1 m

SEC (XBRL)· 30 Jan 2026verified

Property, plant & equipment, net
2023
3.8 m
2024
4.1 m
2025
3.5 m

SEC (XBRL)· 30 Jan 2026verified

Intangibles (excl. goodwill)
2023
152.9 k
2024
140.1 k
2025
121.8 k

SEC (XBRL)· 30 Jan 2026verified

Total assets
2023
65.5 m
2024
69.6 m
2025
69.3 m

SEC (XBRL)· 30 Jan 2026verified

Accounts payable
2023
11.8 m
2024
10.7 m
2025
7.5 m

SEC (XBRL)· 30 Jan 2026verified

Short-term debt
2023
1.1 m
2024
50.9 k
2025
3.1 m

SEC (XBRL)· 30 Jan 2026verified

Long-term debt
2023
49.7 k
2024
1.1 m
2025
—

SEC (XBRL)· 14 Feb 2025verified

Current liabilities
2023
31.8 m
2024
27.1 m
2025
23.2 m

SEC (XBRL)· 30 Jan 2026verified

Total liabilities
2023
33.7 m
2024
29.2 m
2025
23.9 m

SEC (XBRL)· 30 Jan 2026verified

Equity
2023
31.8 m
2024
40.5 m
2025
45.5 m

SEC (XBRL)· 30 Jan 2026verified

Shares outstanding at year end
2023
—
2024
15.5 m
2025
17.0 m

SEC (XBRL)· 30 Jan 2026verified

Cash flow · USD

Operating cash flow
2023
4.4 m
2024
15.1 m
2025
-3.5 m

SEC (XBRL)· 30 Jan 2026verified

Capex
2023
740.5 k
2024
681.2 k
2025
171.0 k

SEC (XBRL)· 30 Jan 2026verified

Free cash flow
2023
3.6 m ≈
2024
14.4 m ≈
2025
-3.7 m ≈

SEC (XBRL)· 30 Jan 2026derived

Investing cash flow
2023
-6.0 m
2024
-12.1 m
2025
-405.7 k

SEC (XBRL)· 30 Jan 2026verified

Financing cash flow
2023
-19.5 k
2024
-344.7 k
2025
6.9 m

SEC (XBRL)· 30 Jan 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-30.0%
computed by olivLawFY 2025
Revenue CAGR 3Y
1.1%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
-122.1%
computed by olivLawFY 2025
Net income growth (YoY)
-84.5%
computed by olivLawFY 2025
Net income CAGR 3Y
-39.7%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
-84.6%
computed by olivLawFY 2025
EPS CAGR 3Y
-40.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
-125.7%
computed by olivLawFY 2025

Profitability

Gross margin
17.6%
computed by olivLawFY 2025
EBITDA margin
-2.4%
computed by olivLawFY 2025
EBIT margin
-3.4%
computed by olivLawFY 2025
Net margin
2.6%
computed by olivLawFY 2025
FCF margin
-7.6%
computed by olivLawFY 2025

Returns

ROE
2.9%
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
ROA
1.8%
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
ROIC
-3.8%
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
ROCE
-3.6%
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-7.1 m USD
computed by olivLawbalance sheet at 30 Sept 2025
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
0.1x
computed by olivLawbalance sheet at 30 Sept 2025
Interest coverage
-23.4x
computed by olivLawFY 2025

Liquidity

Current ratio
2.5x
computed by olivLawbalance sheet at 30 Sept 2025
Quick ratio
2.4x
computed by olivLawbalance sheet at 30 Sept 2025
Cash ratio
0.4x
computed by olivLawbalance sheet at 30 Sept 2025

Cash

Operating cash flow
-3.5 m USD
computed by olivLawFY 2025
Capital expenditure
171.0 k USD
computed by olivLawFY 2025
Free cash flow
-3.7 m USD
computed by olivLawFY 2025
FCF conversion
-294.4%
computed by olivLawFY 2025
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
140 days
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
Days inventory outstanding
41 days
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
Days payables outstanding
84 days
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
Cash conversion cycle
98 days
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025

Market and valuation

Market capitalisation
75.4 m USD
computed by olivLawbalance sheet at 30 Sept 2025
Enterprise value
68.3 m USD
computed by olivLawbalance sheet at 30 Sept 2025
Market cap / net income TTM
60.1x
computed by olivLawFY 2025
P/E (TTM)
55.4x
computed by olivLawFY 2025
Earnings yield
1.8%
computed by olivLawFY 2025
P/B
1.7x
computed by olivLawbalance sheet at 30 Sept 2025
P/S
1.6x
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
1.4x
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-4.9%
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
3.91
computed by olivLawbalance sheet at 30 Sept 2025

Valuation

olivLaw classification

Unattractive profile

Score: 16 / 100

A scoring methodology on indicators and valuation, not investment advice.

score < 40

Closing price

4.43 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 75.4 m USD

Key indicators

Market capitalisation
75.4 m USD
computed by olivLawbalance sheet at 30 Sept 2025
P/E (TTM)
55.4x
computed by olivLawFY 2025
P/B
1.7x
computed by olivLawbalance sheet at 30 Sept 2025
EV/EBITDA
unavailable
insufficient data
ROE
2.9%
computed by olivLawFY 2025 · balance sheet at 30 Sept 2025
Net margin
2.6%
computed by olivLawFY 2025
Revenue growth (YoY)
-30.0%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2025
Latest balance sheet date: 30 Sept 2025
Share count (cover of the latest filing), as of: 30 Sept 2025
Source: SEC (XBRL)published 30 Jan 2026
verified 124

The data is older than the freshness threshold.

Score by group

  • Balance sheet40
  • Growth5
  • Valuation6
  • Quality22

Estimated value range

Low
1.37
USD per share
Mid
1.62
USD per share
High
2.31
USD per share
Price: 4.43 USD
The price is above the range
Potential to the central value: -63.4% (value / price − 1)
Margin of safety: -173.1% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.37 – 2.31 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/E1.37 – 2.31 (Mid 1.62)
    9 companies used · median multiple 20.3x · quartiles 17.1x – 28.8x
    BKR, FET, FLOC, FTI, INVX, NOV, OMSE, WFRD, WHD
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Oil & Gas Field Machinery & Equipment (SIC 3533)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 16/100

FactorValueScoreWeight used
ROIC · Quality-3.8%25 (vs peers)15%
Net margin · Quality2.6%40 (vs peers)9%
FCF conversion · Quality-294.4%0 (on a fixed band)9%
Revenue CAGR 3Y · Growth1.1%10 (on a fixed band)12%
EPS CAGR 3Y · Growth-40.0%0 (on a fixed band)12%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-23.4x0 (on a fixed band)9%
Current ratio · Balance sheet2.5x100 (on a fixed band)6%
P/E (TTM) · Valuation55.4x10 (vs peers)15%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-4.9%0 (on a fixed band)12%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet40/100 · 2/3 factors with a value
  • Growth5/100 · 2/2 factors with a value
  • Quality22/100 · 3/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation6/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Leishen Energy Holding Co., Ltd. (LSE). Latest full fiscal year: 2025; data up to 2025-09-30.

Figures computed from the financial statements: revenue 48.3 m USD in 2025; YoY growth -30.0%; net margin 2.6%; ROE 2.9%.

The estimated value range is 1.37–2.31 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 1.62 USD, the price of 4.43 USD leaves a potential of -63.4% (value / price − 1) and a margin of safety of -173.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 16/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 2.5x

What contradicts it

  • ROIC: -3.8%
  • FCF conversion: -294.4%
  • Revenue CAGR 3Y: 1.1%
  • EPS CAGR 3Y: -40.0%
  • Interest coverage: -23.4x
  • P/E (TTM): 55.4x
  • FCF yield: -4.9%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Oil & Gas Field Machinery & Equipment (SIC 3533) · same industry (4-digit SIC) · compared with 15 companies

Multiples and returns vs the median

P/E
55.4x
vertical median 22.0x
above median (+152.1%)
EV/EBITDA
—
vertical median 9.7x
P/S
1.6x
vertical median 1.0x
above median (+61.3%)
P/B
1.7x
vertical median 1.6x
at median
ROE
2.9%
vertical median 8.4%
below median (−65.1%)
Net margin
2.6%
vertical median 4.8%
below median (−45.4%)
EBIT margin
-3.4%
vertical median 7.4%
below median (−146.9%)
Revenue YoY
-30.0%
vertical median 1.5%
below median (−2,095.6%)
Net debt/EBITDA
—
vertical median 0.2x
Dividend yield
—
vertical median 1.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
BKRBaker Hughes Company49.5 bn17.115.1%10.1%−0.3%−1% / +48%
FTITechnipFMC plc25.1 bn20.338.6%12.0%+9.4%+43% / +211%
NOVNov Inc.6.4 bn45.22.3%1.6%−1.4%+17% / −4%
WFRDWeatherford International plc6.2 bn15.323.0%8.6%−10.8%+15% / −5%
WHDCactus, Inc.4.3 bn23.614.7%12.0%−4.5%+35% / +37%
DNOWDnow Inc.2.8 bn—-12.4%-4.9%+18.8%+10% / +54%
INVXInnovex International, Inc.1.8 bn37.14.5%4.8%+48.0%+16% / +15%
FETForum Energy Technologies, Inc.845.3 m28.89.8%3.5%−3.1%+135% / +238%
OISOil States International, Inc510.2 m—-16.8%-16.5%−3.4%+35% / +24%
OMSEOMS Energy Technologies Inc.167.2 m3.343.5%22.0%unavailable−16% / unavailable
LSELeishen Energy Holding Co., Ltd.75.4 m55.42.9%2.6%−30.0%−15% / unavailable
DTIDrilling Tools International Corporation52.9 m—-2.5%-2.0%+3.4%−38% / −56%
STAKSTAK Inc.27.5 m71.52.9%1.5%+13.2%+202% / unavailable
GPUSHyperscale Data, Inc.247.1 k—-159.8%-71.0%−4.3%−89% / −100%
SEISolaris Energy Infrastructure, Inc.——8.4%7.2%+98.7%+20% / +573%
FLOCFlowco Holdings Inc.—17.712.5%6.4%+41.9%+15% / unavailable

1- and 3-year price returns: for LSE from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
2.33
Total return -47% · Per year -47%
4.13
Total return -7% · Per year -7%
6.23
Total return 41% · Per year 41%
3 years
2.11
Total return -52% · Per year -22%
4.22
Total return -5% · Per year -2%
7.01
Total return 58% · Per year 17%
5 years
1.91
Total return -57% · Per year -15%
4.32
Total return -3% · Per year -1%
7.90
Total return 78% · Per year 12%
What moves the 3-year price the most
  • Exit P/E± 1.06
  • Net margin± 0.74
  • Annual revenue growth± 0.63
  • Annual dilution± 0.06

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Jan 2026; since then the company filed 6-K (14 Sept 2026), 6-K (17 Feb 2026).

In brief

Leishen Energy Holding Co., Ltd. supplies clean-energy equipment and integrated solutions to the oil and gas industry, operating mainly in China and extending into Central Asia and Southeast Asia. Revenue fell 30.0% in fiscal 2025 1, as domestic demand weakened and customer concentration stayed high, which makes the shift toward international markets a central question for the company 1.

SWOT

Strengths

  • The company has a broad range of proprietary equipment and a patent portfolio, including unique technologies for ultra-high pressure compressors 1.
  • Integrated solutions that combine products, maintenance and technical support can build durable relationships with industry customers 1.
  • The Nasdaq listing provided capital that gives the company a funding base for expansion 1.

Weaknesses

  • Revenue depends on a small number of customers, and losing one of them could materially affect results 1.
  • Profitability fell sharply in fiscal 2025, and the company recorded a loss from operations 1.
  • Activity is concentrated geographically in China, which leaves the company exposed to lower domestic demand 1.

Opportunities

  • Expansion into the Middle East, Central Asia and Southeast Asia could reduce dependence on the Chinese market 1.
  • Demand for natural gas and cleaner energy solutions could open new contracts in the new energy segment 1.
  • Growth in the digitalization and integration segment could bring revenue from new customers at home and abroad 1.

Threats

  • Low oil and gas prices could reduce customer investment and demand for the company's equipment 1.
  • Domestic competition and price pressure could erode margins, especially if the market does not recover 1.
  • Regulatory changes and geopolitical tensions could affect operations and access to certain markets 1.

Risks

  • Customer concentrationhigh

    The three largest customers accounted for a major share of revenue, and losing or cutting orders from a single client could materially affect the company 1.

  • Industry cyclicalityhigh

    Customer activity depends on oil and gas prices, and fluctuations can lead to smaller investment budgets and delayed orders 1.

  • Regulatory risk in Chinamedium

    Legislative changes with little advance notice and uncertainty in enforcement could affect operations and the corporate structure 1.

  • US listing risksmedium

    The company is subject to rules on auditors and transparency that could lead to trading restrictions if requirements are not met 1.

  • Currency and fund transferlow

    Fluctuations in the Chinese currency and rules on moving funds out of the country could limit the use of proceeds and affect results reported in dollars 1.

Investment thesis

What would need to be true (bull case)

  • If international expansion succeeds, the company could reduce its dependence on the Chinese market and return to revenue growth 1.
  • The patent portfolio and proprietary high-pressure equipment technology could support better pricing in specialized segments 1.
  • If the new contract in the new energy segment is renewed, revenue could return to earlier levels 1.

What would break the thesis

  • The drop in revenue and the swing from profit to operating loss could signal a weaker competitive position over the medium term 1.
  • Dependence on a few large customers and on the Chinese market makes results vulnerable to individual decisions or economic slowdowns 1.
  • Price pressure from competition could continue and limit margins even if volumes stabilize 1.

What to watch

  • Trend in revenue from China and orders from the main customersnext 10-K
  • Renewal of the contract with the major client in the new energy segment2027
  • Progress of expansion in the Middle East, Central Asia and Southeast Asia2027
  • Gross margin and operating cost trend after the fiscal 2025 declineQ1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Jan 2026; since then the company filed 6-K (14 Sept 2026), 6-K (17 Feb 2026).

The business

The company runs four segments: clean-energy equipment, new energy production and operation, digitalization and integration equipment, and oil and gas engineering technical services 1. Its core products include ultra-high pressure compressors, expansion units, wellhead safety control systems and polymer flexible composite pipes 1. The company listed on the Nasdaq Capital Market in December 2024 under the symbol LSE, raising 6.1 million dollars in gross proceeds 1.

The structure is a Cayman Islands holding company, with operations run through subsidiaries in China, Hong Kong and, more recently, Saudi Arabia and the United States 1. In November 2025 the shares were reclassified into Class A and Class B shares, with Class B carrying twenty-five votes per share, which concentrates decision-making control 1. The company holds 102 invention and utility model patents, which underpin its technological positioning 1.

The source indicates that some products, such as wellhead safety systems, were previously imported before local development began in 2016, and that composite pipes can replace 70% to 80% of traditional metal pipelines in certain uses 1. These details suggest that product innovation is the main source of differentiation 1.

Segments

Clean-energy equipment

This is the largest segment, at 45.7% of revenue in fiscal 2025 1. It includes gas compressors, expansion units and wellhead heating systems, and sales fell 34.7% in the same year, mainly due to lower domestic demand and lower prices on common products 1.

New energy production and operation

The segment accounted for 40.4% of revenue in fiscal 2025 and covers production, storage and transport of LNG and CNG 1. The sales decline was linked to the expiry of a sales agreement with a major client, which the company is working to renew 1.

Market context

The company operates mainly in the global oil and gas equipment market, with a focus on the upstream segment, where equipment is used on site from the wellhead to pipeline export 1. Demand in China fell in fiscal 2025 and domestic competition intensified, while the company identifies Pakistan, Indonesia, the Middle East and Central Asia as growth directions 1. The source notes that oil and gas markets are cyclical and that customer activity depends on crude and natural gas prices 1.

Market developments are also shaped by regulatory and geopolitical factors. Regulatory changes in China and the conflict in Ukraine could affect energy prices and demand for services, and the impact on the company would depend on the duration and severity of these events 1.

Trends

  • Cyclicality of the oil and gas sectorheadwind

    Customer revenues depend on oil and gas prices, and prolonged low prices have in the past reduced industry capital budgets 1. If prices stay low, demand for the company's equipment could remain under pressure 1.

  • Expansion into international marketstailwind

    The company says it is actively exploring international markets to rebuild its revenue base and reduce reliance on China 1. If these efforts succeed, they could offset weaker domestic demand 1.

  • Weaker domestic demand and price pressure in Chinaheadwind

    Domestic demand declined amid an economic slowdown, and competition has led to lower selling prices for some common products 1. This trend could persist if the domestic market does not recover 1.

  • Energy transition and natural gasmixed

    The new energy segment, which includes LNG and CNG, may benefit from demand for cleaner sources, but reliance on individual contracts makes revenue sensitive to the loss of a client 1. The net effect depends on the company's ability to renew and extend contracts 1.

Competitive position

The source indicates that competition in the domestic Chinese market is intense, and prices for common products have fallen by 10% to 40% in some cases 1. The company operates in a sector where customers can demand price cuts or switch to rival suppliers, so customer loyalty is an important factor 1.

The company differentiates itself through proprietary technology, international certifications for certain products and integrated solutions that combine equipment, services and technical support 1. The source does not identify US-listed competitors, so the competitive position is described only in terms of the markets the company serves 1.

  • Local Chinese oil and gas equipment suppliers

    The source mentions intense competition in the domestic market but does not name specific competitors; rivals' lower prices have affected the company's margins 1.

  • International oil and gas equipment manufacturers

    The company previously imported certain technologies before local development and competes abroad with established suppliers, though the source does not name them 1.

  • Oil and gas engineering technical service providers

    Existing customers have adopted low-cost operating models, which has pushed down the company's service rates 1.

  • Composite and polymer pipe manufacturers

    Flexible pipes compete with traditional metal pipelines and other polymer pipe suppliers, and the source does not name other companies 1.

News & filings

Sources

  1. [1] Form 20-F, fiscal year ended 2025-09-30 · SEC / Leishen Energy Holding Co., Ltd. · 30 Jan 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.