China Resources Building Materials H1 revenue falls on lower cement and building materials demand
China Resources Building Materials H1 revenue falls on lower cement and building materials demand
Overview
China cement and building materials supplier's H1 revenue fell 15% yr/yr amid weaker demand
Company posted net loss attributable to owners, reversing a profit in prior-year period
Interim dividend maintained at HK$0.014 per share despite reporting a loss
Outlook
China Resources Building Materials expects H2 2026 capital expenditure of about RMB 1,497.6 mln, funded by borrowings and internal cash generation
Result Drivers
WEAK DEMAND - Co cited lower cement and building materials demand, with national cement production down 8% yr/yr and reduced utilization rates across its plants
LOWER INFRASTRUCTURE AND REAL ESTATE INVESTMENT - Co pointed to reduced national fixed asset and real estate investment as factors impacting demand
COST MANAGEMENT INITIATIVES - Co said it implemented energy-saving and cost reduction measures, including optimization of coal mix and deployment of energy-saving equipment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 8.64 bln |
|
H1 Net Loss Attributable |
| RMB 441.20 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy."
Wall Street's median 12-month price target for China Resources Building Materials Technology Holdings Ltd is HK$1.95, about 84% above its August 21 closing price of HK$1.06
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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