UBS lowers the target price of CR BLDG MAT TEC to 1.7 yuan, rating "Neutral"

UBS published a report stating that CR BLDG MAT TEC (01313.HK) fiscal year 2025 performance is generally in line with expectations, with profit margins offsetting sales pressure. The net profit for fiscal year 2025 is RMB 479 million, which is 11% higher than the bank's forecast but 6% lower than market expectations. Cement and clinker sales decreased by 10% year-on-year to 55 million tons, while gross profit per ton increased by 6% year-on-year to RMB 39. Concrete sales increased by 18% year-on-year to 15 million cubic meters, with gross profit per cubic meter rising by 5% year-on-year to RMB 41. Aggregate sales increased by 23% year-on-year to 86 million tons, but gross profit per ton decreased by 40% year-on-year to RMB 8.

The report indicates that management expects a stable dividend outlook. Total capital expenditure for 2025 is RMB 1.8 billion, with an expected RMB 3.2 billion for 2026. The bank has lowered the target price for CR BLDG MAT TEC from HKD 1.81 to HKD 1.70, with a "neutral" rating