CNBM

CNBM closed at HK$3.73 today after morning weakness, declining from HK$3.88 at the open to a low of HK$3.71 in afternoon session, with turnover exceeding 63.16 million shares. The decline reflects persistent concerns following last month's profit warning of an expected interim loss of RMB 890 million, amid ongoing cement industry supply glut and demand softness. Earnings data showed Q4 net loss of HK$7.456 billion with -14.2% net margin, while Q1 loss narrowed to HK$201 million but remained in loss, with revenues falling 9.07% year-over-year. Year-to-date the stock has declined 27.43%, down 48.62% from its 52-week high of HK$7.26, yet sitting only 6.57% above its July mid-month low of HK$3.50, with a depressed P/B ratio of 0.26x reflecting market caution on near-term profitability recovery.

China National Building Material closed at HK$3.70 with modest gains, underpinned by technical support near 52-week lows following weeks of negative catalysts being fully absorbed. The H1 profit warning signals an expected loss of approximately RMB 890 million, while Q1 posted a RMB 201 million loss (down 128% year-over-year) as operating revenue declined 9% to HK$40.55 billion. The stock now trades just 5.7% above its 52-week low of HK$3.50, down 28% year-to-date and nearly 49% from the year's high of HK$7.26. With a price-to-book ratio of just 0.26 and market cap of HK$28.1 billion, valuation appears historically compressed, yet persistent losses and negative ROE reflect sustained profitability challenges. Industry headwinds from cement supply oversupply and weak building material demand create additional near-term pressure.

The stock declined 5.01% to HK$3.60, reflecting weakness evident across both intraday sessions: morning trading plunged sharply from its opening level of HK$3.70 to an intraday low of HK$3.53, while the afternoon's rebound attempt to HK$3.60 ultimately proved insufficient to arrest the overall downtrend, collectively signaling persistent market pessimism surrounding the company's fundamentals. Since establishing a 52-week low of HK$3.50 on July 16, the stock remains pinned near its recent lows, having tumbled over 30% year-to-date from HK$5.14, and trades substantially below the 20-day moving average of HK$4.15 and 60-day moving average of HK$4.915, reflecting pronounced technical deterioration. Underlying profitability challenges drive the recent weakness: Q4 2025 recorded a significant net loss of HK$746 million representing a deterioration of 328% year-over-year, while Q1 2026 loss narrowed to HK$201 million though profitability remained elusive, with revenue declining 9.07% year-over-year amid persistent margin compression.

China National Building Material rebounded about 4.4% to HK$3.79 today, bouncing from the near-term 52-week low of HK$3.50 (July 16) as market sentiment recovers from recent profit warnings. The company flagged an H1 2026 loss of approximately RMB 890 million, with Q4 2025 net loss of RMB 7.456 billion (down 328% YoY) and Q1 2026 loss of RMB 201 million (down 128% YoY), while revenues declined 1.39% and 9.07% YoY respectively, reflecting severe oversupply in the building materials sector. The stock has plummeted from the 52-week high of HK$7.26 to recent lows, down 47.8%, now just 8% above the 52-week low; with a price-to-book ratio of 0.27, well below the 60-day moving average of HK$4.94, and down 26.26% year-to-date. The extreme undervaluation may attract bargain-hunting interest, though consecutive massive losses and sluggish industry recovery remain key risks.

China National Building Material closed essentially flat at HKD3.63 today, reflecting the market's digestion of last week's profit warning that flagged an H1 loss of approximately RMB890 million. Supply glut pressures in the building materials sector drove the stock down from its YTD entry of HKD5.14 to the current level, marking a 50% decline from its 52-week peak of HKD7.26 and a 29.38% year-to-date drop. Recent earnings confirm the operational strain: Q4 posted a net loss of HKD7.456 billion (YoY -328%) and Q1 remained underwater with a HKD201 million loss, while operating revenue contracted 9.07% year-over-year. That said, the depressed price-to-book ratio of 0.26 and proximity to the 52-week low near HKD3.50 suggest the market may be pricing in adverse scenarios, with the near-term trajectory dependent on whether the materials sector inflection emerges and H1 results confirm the trajectory.