China Building Materials (03323) fell by more than 4%. As of press release, it fell 4.07% to HK$2.12, with a turnover of HK$24.2983 million.
The Zhitong Finance App learned that China Building Materials (03323) fell by more than 4%. As of press release, it fell 4.07% to HK$2.12, with a turnover of HK$24.2983 million.
Goldman Sachs released a research report stating that China Building Materials's recurring loss after excluding one-off projects in the first half of the year was 1.7 billion yuan, lower than the bank's and market expectations, due to higher than anticipated non-core revenue and tax expenses. As all business areas of the company face downside risks, the loss trend is expected to continue, so the company's rating was downgraded from “buy” to “neutral”, and the target price was drastically reduced from HK$5 to HK$2.
The bank lowered China Building Materials' recurrent loss forecast by 84% this year, and also lowered it by 34% to 41% over the next two years to reflect a larger adjustment in profit margins for cement and ready-mixed concrete, as well as weak average sales prices and profit margin prospects for most new materials. The bank expects China Building Materials's cement profit margin to remain low from the second half of this year to 2026, which will be as low as 33 yuan per ton.