Citi released a research report saying that the stock prices of China Building Materials (03323) and its subsidiary China Jushi (600176.SH) rose earlier, and China Building Materials acted simultaneously at the parent and subsidiary levels, showing its commitment to shareholder value management, believing that the relevant impact was positive, and maintaining the company's “buy” rating.
According to the report, China Building Materials announced earlier that it proposed a cash offer with preconditions to buy back up to about 0.841 billion H shares at HK$4.03 per H share. The bank believes that the glass fiber industry has broken out of its trough, and profitability improved with price recovery in the fourth quarter. China Building Materials plans to increase its holdings of China Jushi shares also demonstrated shareholders' confidence in the recovery of the industry.