Glonghui, April 18, 丨Credit Suisse issued a report that it lowered the target price of China Building Materials (3323.HK) from HK$8.7 to HK$753, indicating that the company's performance forecast showed that the first quarter of this year would shift from profit to loss, and recorded a loss of about 550 million yuan, lower than market expectations, mainly due to a drop in the average selling price of cement, concrete and fiberglass. The report quoted China's building materials management as expecting that some losses in the first quarter would be offset by a reduction in the cost of cement and concrete products and a reduction in the fair value of financial assets. Credit Suisse expects that the first quarter of this year will be a low point in the company's operations, and future profits will gradually improve. The average cement price in China in the first quarter was 17% year-on-year, and as the weather improved in April, cement demand has improved. In addition to the fact that most cement companies are actively developing off-peak production in the next quarter, the bank expects future cement prices to fluctuate smoothly in the middle band. At the same time, it also expects that the decline in off-season sales will lead to an increase in fixed costs and expenses, putting pressure on profits. As a result, China Building Materials's profit forecast for 2022 to 2023 was lowered by 11.4% and 27.3%, respectively, to maintain the “outperform the market” rating. The stock is currently reported at HK$612, with a total market value of HK$51.6 billion.