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Sinoma Science & Technology Posts Strong Profit Growth but Cash Flow Turns Deeply Negative

Story Highlights
  • Sinoma Science & Technology delivered strong revenue and profit growth in Q1 2026.
  • Robust earnings contrasted with a sharply deeper operating cash outflow, raising sustainability questions.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sinoma Science & Technology Posts Strong Profit Growth but Cash Flow Turns Deeply Negative

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China National Building Material Co ( (HK:3323) ) just unveiled an update.

Sinoma Science & Technology, a subsidiary of China National Building Material Company Limited focused on advanced materials, reported strong top- and bottom-line growth for the quarter ended 31 March 2026. Operating revenue rose 24.5% year on year to RMB 6.85 billion, while net profit attributable to shareholders increased 40.2%, and profit excluding extraordinary items surged nearly 80%, underscoring solid underlying performance.

Despite robust earnings, Sinoma Science & Technology recorded a sharp deterioration in operating cash flow, with net cash outflow from operating activities widening to RMB 2.01 billion from RMB 288 million a year earlier. Total assets and net assets both ticked up modestly, suggesting balance-sheet expansion, but the negative cash flow may prompt closer scrutiny from investors regarding working capital management and the sustainability of the current growth trajectory.

The most recent analyst rating on (HK:3323) stock is a Buy with a HK$5.90 price target. To see the full list of analyst forecasts on China National Building Material Co stock, see the HK:3323 Stock Forecast page.

More about China National Building Material Co

China National Building Material Company Limited is a major Chinese building materials group, with operations spanning cement, new materials and related technologies. Its subsidiary Sinoma Science & Technology Co., Ltd., listed on the Shenzhen Stock Exchange, focuses on advanced materials and technology-driven products for industrial and construction markets.

Average Trading Volume: 44,784,888

Technical Sentiment Signal: Buy

Current Market Cap: HK$38.19B

For detailed information about 3323 stock, go to TipRanks’ Stock Analysis page.

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