Company Reports

China Resources Building Materials is a leader in Southern China’s cement market, with an annual production capacity of over 100 million metric tons in 2025. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to digest as high-energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we anticipate CRBM to raise its market share through ongoing consolidation.

China Resources Building Materials' revenue declined 15% in the first half of 2026. Gross margin fell to 8.3% from 18.5% a year ago due to lower cement, concrete, and aggregates selling prices, resulting in an operating loss of CNY 393 million. The interim dividend remained at HKD 0.014 per share.

China Resources Building Materials is a leader in Southern China’s cement market, with an annual production capacity of over 100 million metric tons in 2025. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to digest as high-energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we anticipate CRBM to raise its market share through ongoing consolidation.

China Resources Building Materials saw a 9% year-on-year revenue decline in the first quarter of 2026, as average selling prices for cement and aggregate products plunged by 14%-16%. Gross margin deteriorated by 490 basis points to 11.4%, resulting in a CNY 134 million operating loss.

China Resources Building Materials is a leader in Southern China’s cement market, with an annual production capacity of over 100 million metric tons in 2025. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to digest as high-energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we anticipate CRBM to raise its market share through ongoing consolidations.

China Resources Building Materials, or CRBM, posted a 9% revenue decline and a flat recurring operating margin of 3.2% in 2025. The firm guided for a 5% contraction in 2026 cement sales volume due to soft property demand, but highlighted an emerging rebound in sales during the first two months.

China Resources Building Materials is a leader in Southern China’s cement market, with an annual production capacity of over 100 million metric tons in 2024. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high-energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we anticipate CRBM to raise its market share through ongoing consolidations.

According to the National Bureau of Statistics, China's cement production volume decreased by 7% in 2025 amid subdued infrastructure and property investment activity. The cement price index also fell by 21% during 2025, as per ccement.com.

China Resources Building Materials reported 11% and 80% year-on-year declines in revenue and operating profit, respectively, in the third quarter of 2025. The downturn was mainly driven by falling cement and aggregates prices amid oversupply, alongside increased fixed-asset write-offs.

China Resources Building Materials is a leader in Southern China’s cement industry, with an annual production capacity of over 100 million metric tons in 2024. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high-energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we think CRBM should raise its market share through ongoing consolidations.

China Resources Building Materials reported a 1% year-on-year dip in revenue and 14% growth in operating profit for the first half of 2025. The firm ascribes this to an improvement in the cement segment's gross margin amid higher selling prices and lower raw material costs.

China Resources Building Materials is a leader in Southern China’s cement industry, with an annual production capacity of over 100 million metric tons in 2024. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high-energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we think CRBM should raise its market share through ongoing consolidations.

Anhui Conch Cement and China Resources Building Materials experienced top-line contraction but margin improvement in the first quarter of 2025 compared with a year earlier. Both firms achieved net profits for the quarter, mainly due to higher cement prices and lower raw material costs.

China Resources Building Materials, or CRBM, is a leader in Southern China’s cement industry, with annual production capacity of over 100 million metric tons in 2024. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we think CRBM should raise its market share though ongoing consolidations.

China Resources Building Materials, or CRBM, is a leader in Southern China’s cement industry, with annual production capacity of over 100 million metric tons in 2024. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we think CRBM should raise its market share though ongoing consolidations.

China Resources Building Materials, or CRBM, reported a 67% year-on-year net profit decline for 2024, consistent with its profit warning. This was mostly attributed to a 10% revenue decrease and an 11% administrative cost increase on more asset impairment and operating deleverage.

China Resources Building Materials, or CRBM, is a leader in Southern China’s cement industry, with annual production capacity of about 100 million metric tons in 2023. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we think CRBM should raise its market share though ongoing consolidations.

China Resources Building Materials has forecast that its 2024 net profit will decline by 62%-72% year on year. This would be due to lower gross margins in businesses other than cement and concrete, the absence of a one-off disposal gain from 2023, and increased asset impairment in 2024.

We initiate China Resources Building Materials with an HKD 1.70 per share fair value estimate, a no-moat rating, a Standard Capital Allocation Rating, and a Very High Morningstar Uncertainty Rating. CRBM was established by China Resources Group in 2003 and mainly engages in the production of cement, clinker, concrete, and aggregates. It has built a strong representation in Southern China and leverages the Xijiang River to transport its products to customers in coastal areas, which results in cost savings. As China’s cement industry has been hampered by sluggish home demand and excess supply, we expect CRBM’s selling prices of cement and clinker to keep declining till 2025, which will weigh on its margins. However, we see faster expansion of the more profitable aggregates business to lead to a favorable earnings mix shift over time. As such, we factor in a 2% and 16% 2023-28 compound annual growth rate for CRBM’s revenue and operating profit, respectively. We view CRBM’s shares as fairly priced and prefer Anhui Conch Cement’s H-shares, given its more resilient profitability and attractive valuation.

China Resources Building Materials, or CRBM, is a leader in Southern China’s cement industry, with annual production capacity of about 100 million metric tons in 2023. Centered around infrastructure and real estate demand, China’s cement industry sees challenges from a material shift toward a less construction-intensive economy. Cement’s oversupply may also require multiple years to normalize as high energy-waste peers gradually exit. However, we believe CRBM is well-positioned to remain a top cement producer in provinces such as Guangdong and Guangxi, thanks to its rich mining rights resources, advanced technologies in carbon recycling, and robust distribution network. While domestic cement and related sectors should remain fragmented, we think CRBM should raise its market share though ongoing consolidations.