CICC: Cuts China Resources Building Materials Technology (01313.HK) target price by 40% to HK$1.33, maintains "Outperform" rating, optimistic about gradual earnings recovery

Zhitong Finance APP has learned that CICC issued a research report stating that China Resources Building Materials Technology's (01313.HK) third-quarter 2026 results were below the bank's expectations. Considering the higher-than-expected rise in coal costs, combined with continued pressure on cement and aggregate prices, the bank lowered its forecast for the company's net profit attributable to parent for 2026 and 2027 from RMB 803 million and RMB 823 million to RMB -794 million and RMB 115 million, respectively. The bank maintained its "Outperform" rating and cut its target price by 40% to HK$1.33. Considering that the company is currently at the bottom of a historical cycle and product prices have begun to recover, the bank believes that supply constraints in the South China region will strengthen, and that as coal price pressure eases and supply governance continues, the company's profitability is expected to gradually recover.