CNBM Shares Fall on Warning of Widening Losses

By Tracy Qu

China National Building Material's shares fell after the company said first-quarter losses likely more than doubled, partly due to weak prices of cement, commercial concrete and glass fiber, its major products.

Shares were 6.3% lower at HK$2.83 in Thursday morning trade, taking losses for the year to 15.3%.

Beijing-based CNBM said late Wednesday that it expects a loss of about 1.3 billion yuan (US$179.6 million) in the first quarter, wider than its loss of CNY526 million a year ago. It said lower selling prices of its key products, the worsening performance of associates and higher currency losses offset a decrease in cost of sales.

Citi analysts last week said after a meeting with CNBM that management had indicated demand in the cement sector fell 10% on year in the first quarter, with full-year demand estimated to decline 3%-5%.

The analysts at the time kept a buy rating on CNBM with a target price of HK$7.90.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

April 18, 2024 00:29 ET (04:29 GMT)

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