BofAS downgraded China Resources Building Materials Tech to an Underperform rating due to a net loss of RMB188 million in the first quarter of 2026, which was in line with previous guidance. Despite a slight increase in sales volume, the company's average gross profit per tonne significantly decreased, indicating a strategy focused on sales volume at the expense of margins. The broker also lowered its earnings forecasts for 2026 and 2027 by 32% and 27%, respectively, and cut the target price from HKD1.3 to HKD1.2, citing valuation concerns and a lack of near-term catalysts.
