Jinwu Financial News | The stock price of China Building Materials (03323) was weak. As of press release, it was HK$3.36, down 4.55%, with a turnover of HK$65.2066 million.
According to the news, HSBC Global Research and Development reports that due to the weakness of the cement business, it is expected that China Building Materials' profits will bottom out after falling by about 25% year-on-year, and profits are expected to recover starting next year. The reason is that cement profit margins are stabilizing; the overseas cement business is expanding; and the new materials business is growing moderately.
According to the bank, the company's profit this year will be pressured by weak cement business. It is expected that cement profit margins will stabilize next year, and its diversified business portfolio will drive future growth. The bank reinstated its “buy” rating and the target price was reduced from HK$8.5 to HK$4.1.