Western Securities released a research report stating that CR BLDG MAT TEC (01313), as a leading cement producer in southern China, has strengthened its cost control capabilities. The firm anticipates that policies such as production restrictions and carbon emissions controls will help alleviate overcapacity and support cement price recovery.

The brokerage forecasts the company's net profit attributable to shareholders at RMB 447 million, 634 million, and 946 million for 2025-2027, with corresponding EPS of RMB 0.06, 0.09, and 0.14, maintaining a "Buy" rating.

In the first three quarters of 2025, CR BLDG MAT TEC reported revenue of RMB 15.07 billion (a 4.47% YoY decline) and net profit of RMB 331 million (a 7.26% YoY increase). However, Q3 standalone revenue fell 10.96% YoY to RMB 4.864 billion, with net profit plunging 82.97% YoY to RMB 24 million.

From Q1-Q3 2025, cement products, concrete, and aggregate businesses generated revenues of RMB 9.135 billion (-12.3% YoY), RMB 3.102 billion (+11.9% YoY), and RMB 2.034 billion (+21.3% YoY), respectively. Gross margins stood at 17.1%, 14.7%, and 25.4%, showing YoY changes of +4.5, +2.3, and -13.2 percentage points.

In Q3 alone, cement products, concrete, and aggregates posted revenues of RMB 2.886 billion (-18.2% YoY), RMB 1.020 billion (-1.4% YoY), and RMB 719 million (+21.7% YoY), with gross margins at 10.6%, 16.1%, and 25.6% (YoY changes of -3.0, +4.1, and -11.5 percentage points).

Additionally, on a full-cost basis for cement products, per-ton expenses rose RMB 12 YoY to RMB 60 in Q1-Q3 2025, with sales/management/financial expenses per ton changing by +RMB 0.2, +12, and -1 YoY. Q3 per-ton expenses increased RMB 3 YoY to RMB 50, with sales/management/financial expenses per ton moving +RMB 0.1, +5, and -2 YoY.