The Zhitong Finance App learned that CICC released a research report stating that while maintaining China Resources Building Materials Technology's (01313) “outperforming the industry” rating, the 2024/25E net profit of 676 million yuan/804 million yuan remained unchanged, with a target price of HK$193 million. The company announced 1Q24 results: revenue of 4.79 billion yuan, -5.6% year-on-year; net profit to mother of -0.28.9 million yuan, compared to -0.30 billion yuan for the same period in 1Q23. The company's 1Q24 performance is basically in line with this forecast.
According to the report, the company's leading position in the region has been consolidated, and the aggregate business has entered a period of rapid growth. The company proposed a market strategy of “seizing share, keeping the bottom line, improving structure, and improving position”, focusing on reducing costs and enhancing core competitiveness throughout the value chain. The bank expects the company to consolidate its leading position in South China in 2024. At the same time, with the completion of production capacity investment and supporting infrastructure construction, the company's aggregate business has entered a period of rapid growth, and the bank believes that its performance contribution is expected to increase; with the further release of production capacity from the base with higher average prices to Guangdong, the company's aggregate sales structure is expected to be optimized. The bank expects the average price of aggregates and gross profit per ton of the company to rise in 2024.