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
04-18-24 0029ET