[ET Net News Agency, 7 December 2018] Citi Research lowered its target price for China
National Building Material (CNBM)(03323) to HK$5.2 from HK$9.9 and downgraded its rating
to "sell" from "buy".
The research house forecast cement demand will fall 2.2% in 2019, led by a slowdown in
property demand, which would be partially offset by infrastructure. Citi forecast CNBM
2019 cement ASP to fall by 6% YoY in 2019. It expects CNBN's 2019 bottom line to drop 31%
YoY on lower unit ASP/GP (gross margin) assumptions.
Citi revised down CNBM 2019/20 earnings by 39%/46% respectively. (KL)