China National Building Material Co (3323) AI Stock Analysis

• Market Cap: HK$42.75B
• Dividend Yield: 3.3%
• Average Volume (3M): 23.56M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.44
• Revenue Growth: -5.50%
• EPS Growth: 1248.29%
• Country: HK
• Employees: 139,519
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.17
• Shares Outstanding: 3,716,397,200
• 10 Day Avg. Volume: 21,056,411
• 30 Day Avg. Volume: 23,558,765
• PEG Ratio: -0.34
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 20.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$6.85
• Price Target Upside: 21.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$5.50 ▼(-2.14% Downside)

The overall stock score reflects a mix of positive technical indicators and attractive valuation, offset by financial performance challenges. The company's strong revenue growth and undervaluation are significant positives, but declining profitability and increased debt levels pose risks. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Business Diversification

CNBM's broad operations across cement, glass, gypsum, engineering and logistics create diversified revenue streams across the building-materials value chain. This reduces dependence on any single product, supports cross-selling, and smooths cash flows across cycles over months.

State-owned Scale & Market Position

As a leading state-owned player, CNBM benefits from scale, preferential access to large public infrastructure projects and potential support from policy channels. These structural advantages underpin durable demand visibility, contracting opportunities, and financing access over the medium term.

Recent Revenue Recovery

A 28.9% revenue rebound indicates stronger end-market demand and improved utilization of fixed assets. Sustained top-line recovery can unlock operating leverage, support margin improvement and aid deleveraging, enhancing cash generation capacity over the coming months.

Negative Factors

Margin Erosion

Sharp long-term compression in gross and net margins signals persistent cost pressures and weaker pricing power. Continued margin erosion limits retained earnings, reduces reinvestment capacity, and makes sustaining profitability and dividend policy more challenging.

Rising Leverage

An elevated debt-to-equity of 1.63 reflects higher reliance on debt financing. Increased leverage raises interest and refinancing risk, constrains strategic flexibility for capex or international growth, and heightens vulnerability to rate or cash-flow shocks.

Weak Cash Conversion

A steep drop in free cash flow and an OCF/net income ratio of 0.13 indicate weak conversion of profits into cash. Poor cash generation undermines the ability to service debt, fund maintenance or growth capex, and sustain distributions without external financing.

China National Building Material Co Business Overview & Revenue Model

Company Description

China National Building Material Company Limited, an investment holding company, engages in building material, new materials, and engineering technical services businesses. The company operates in five segments: Cement, Concrete, New materials, Engineering services, and Others. It produces and sells cement, concrete, and glass fiber, as well as composite and lightweight building materials. The company also provides engineering services to glass and cement manufacturers and equipment procurement. In addition, it is involved in the merchandise trading and other businesses. It operates in the People's Republic of China, Europe, the Middle East, Southeast Asia, Oceania, Africa, the Americas, and internationally. The company was founded in 2005 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

China National Building Material Co. generates revenue through multiple key streams, primarily from the sale of cement and concrete products, which are essential for construction projects. The company also earns revenue from its glass and gypsum product manufacturing divisions. In addition to product sales, CNBM benefits from engineering and construction services, providing comprehensive solutions for large-scale infrastructure projects. Strategic partnerships with major construction firms and government contracts further enhance its revenue potential. Additionally, the company is increasingly focusing on international markets, expanding its operations and sales outside of China, which provides further diversification of its revenue sources.

China National Building Material Co Financial Statement Overview

Summary

China National Building Material Co is experiencing growth in revenue but faces challenges in maintaining profitability and managing debt levels. The declining margins and cash flow metrics indicate potential risks in sustaining financial health. The company needs to focus on improving operational efficiency and managing its debt to enhance its financial stability.

Income Statement

The company has shown a significant revenue growth rate of 28.88% in the most recent year, indicating a strong recovery from previous declines. However, the gross profit margin has decreased over the years, from 30.22% in 2019 to 18.04% in 2024, reflecting increased cost pressures. The net profit margin has also declined, currently at 1.60%, suggesting challenges in maintaining profitability. Despite these issues, the EBIT and EBITDA margins have shown some resilience, with the EBIT margin improving to 8.12% in 2024.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.63, indicating a higher reliance on debt financing, which could pose a risk if interest rates rise. The return on equity has significantly decreased from 21.59% in 2021 to 2.43% in 2024, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced asset structure, but the increasing debt levels are a concern.

Cash Flow

The free cash flow has decreased significantly, with a growth rate of -62.38% in 2024, indicating potential liquidity issues. The operating cash flow to net income ratio is relatively low at 0.13, suggesting that the company is generating less cash from its operations relative to its net income. The free cash flow to net income ratio has also decreased, highlighting challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	191.12B	181.30B	210.22B	233.88B	273.68B	254.76B
Gross Profit	37.56B	32.71B	37.45B	39.84B	65.73B	66.81B
EBITDA	27.05B	30.80B	26.54B	28.36B	56.67B	52.56B
Net Income	8.84B	2.90B	4.41B	8.82B	17.09B	13.55B
Balance Sheet
Total Assets	505.74B	494.01B	488.90B	482.47B	462.54B	456.38B
Cash, Cash Equivalents and Short-Term Investments	30.69B	32.96B	37.37B	35.06B	35.52B	35.87B
Total Debt	208.06B	194.48B	187.03B	176.29B	169.81B	178.40B
Total Liabilities	312.96B	299.48B	295.38B	290.13B	283.92B	291.20B
Stockholders Equity	116.37B	119.44B	123.16B	123.15B	118.68B	108.88B
Cash Flow
Free Cash Flow	21.15B	1.40B	6.98B	-4.72B	13.16B	36.38B
Operating Cash Flow	30.49B	23.20B	29.02B	26.35B	50.09B	64.23B
Investing Cash Flow	-10.95B	-20.28B	-27.34B	-25.68B	-35.61B	-29.34B
Financing Cash Flow	-14.24B	-6.57B	-1.08B	-2.18B	-16.72B	-28.88B

China National Building Material Co Technical Analysis

• Last Price: 5.62

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3323, the sentiment is undefined. The current price of 5.62 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for HK:3323.

China National Building Material Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3323	66 Neutral	HK$42.75B	7.50	5.78%	3.30%	-5.50%	1248.29%
6655	66 Neutral	HK$53.27B	11.66	10.68%	4.82%	0.40%	62.35%
0914	65 Neutral	HK$141.60B	13.33	4.59%	4.59%	-28.50%	23.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2233	60 Neutral	HK$20.59B	19.36	7.74%	1.29%	20.56%	254.64%
0691	48 Neutral	HK$2.44B	15.82	0.80%	―	-14.85%	―
1252	48 Neutral	HK$801.65M	2.24	2.15%	―	0.18%	―

China National Building Material Co Corporate Events

Sinoma Science & Technology Forecasts Profit Surge on Strong Glass Fiber and Wind Blade Sales

China National Building Material has disclosed that its subsidiary Sinoma Science & Technology expects a sharp increase in profitability for the 12 months ended 31 December 2025, with estimated net profit attributable to shareholders rising to between RMB1.55 billion and RMB1.95 billion, up 73.79% to 118.64% from a year earlier, and net profit after deducting non-recurring items projected to climb 173.76% to 251.97%. The unaudited estimate, based on preliminary internal calculations, reflects an improved product mix and higher prices for glass fiber products as well as higher sales volumes of wind power blades, underscoring Sinoma Science & Technology’s strengthening position in high-value new materials and signalling potentially stronger earnings contributions to the parent group if these trends are maintained.

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.