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<Research> BofAS Cuts China Resources Building Materials Tech (01313.HK) TP to HKD1.2; 1Q26 Net Loss In Line
Recommend 15 Positive 19 Negative 11 |
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BofAS said in a research report that China Resources Building Materials Tech (01313.HK) recorded a net loss of RMB188 million in 1Q26, with LPS of RMB0.027, in line with its earlier guidance of RMB170 million to RMB200 million loss. Despite a 7.1% contraction in nationwide demand, cement and clinker sales volume rose 3.6% YoY to 11.7 million tonnes during the period. However, average gross profit per tonne fell significantly from RMB42 in the same period last year to RMB26, reflecting the companys competitive strategy of sacrificing margins to boost sales volume. Other business segments also faced similar challenges. The industry generally expects margins to recover on a QoQ basis for the remainder of the year, as subsequent production controls take effect and strategies shift from prioritizing sales to focusing on profitability. The broker believes China Resources Building Materials Tech will follow a similar pace. However, in light of the 1Q loss, BofAS lowered its earnings forecasts for 2026 and 2027 by 32% and 27%, respectively. The TP was cut from HKD1.3 to HKD1.2, with an Underperform rating maintained, citing valuation premium and a lack of near-term catalysts. (ss/w) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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