HTSC report stated that cr bldg mat tec (01313.HK) net profit for the first three quarters was 0.309 billion yuan, a year-on-year decrease of 51.6%; net profit for the third quarter was 0.143 billion yuan, a year-on-year increase of 74.5%, establishing a year-on-year turning point in profitability, in line with the profit forecast issued on October 14.

The report pointed out that cement prices in the Guangdong and Guangxi regions saw a slight interruption in recovery in September, but regained momentum since October, with the approaching dry season of the Xijiang River expected to continue the price uptrend. As a leading cement enterprise in the southern region, the bank believes that the company is expected to benefit from the profit center restoration brought about by the easing of regional market competition. Maintaining a 'buy' rating.

HTSC lowered its assumptions for cement clinker sales volume, adjusted down the 2024 ton gross profit forecast (delayed price increase window due to September typhoon), and raised the ton gross profit for 2025 to 2026, combined with higher cost assumptions, resulting in a 20.7%, 9.4%, and 5.2% downward revision in the company's earnings per share forecasts for 2024, 2025, and 2026 to 0.11 yuan, 0.13 yuan, and 0.14 yuan, respectively. The bank lowered the target price of cr bldg mat tec by 5.9% to HK$3.53.