Maintain "buy" rating on CR BLDG MAT TEC (01313) as Q3 cement volume and prices both decreased, putting pressure on performance.

Western released a research report stating that CR BLDG MAT TEC (01313), as the leading cement company in the South China region, has strengthened its cost control ability. They expect that policies related to "anti-overwork" such as limiting overproduction and carbon emissions will help alleviate capacity surplus and promote cement price recovery. The bank predicts that the company will achieve a net profit attributable to the parent company of 4.47/6.34/9.46 billion yuan in 2025-2027, with corresponding EPS of 0.06/0.09/0.14 yuan, and maintains a "buy" rating for the company. The report states that the company achieved a revenue of 15.07 billion yuan in the first three quarters of 2025, a decrease of 4.47% year-on-year. The net profit attributable to the parent company was 3.31 billion yuan, an increase of 7.26% year-on-year. In Q3, the company achieved a revenue of 4.864 billion yuan, a decrease of 10.96% year-on-year, and a net profit attributable to the parent company of 0.24 billion yuan, a decrease of 82.97% year-on-year. The bank points out that in the first three quarters of 2025, the company's revenue from cement products/concrete/aggregates business was 9.135/3.102/2.034 billion yuan, a decrease of 12.3%/+11.9%/+21.3% year-on-year. The gross profit margins were 17.1%/14.7%/25.4%, an increase of +4.5/+2.3/-13.2 percentage points year-on-year. In Q3 alone, revenue from cement products/concrete/aggregates business was 2.886/1.02/0.719 billion yuan, a decrease of 18.2%/-1.4%/+21.7% year-on-year, with gross profit margins of 10.6%/16.1%/25.6%, a decrease of -3.0/+4.1/-11.5 percentage points year-on-year. Furthermore, in terms of total expenses for cement products, the company's ton-period expenses increased by 12 to 60 yuan in the first three quarters of 2025, with ton-sales/management/financial expenses increasing by 0.2/+12/-1 yuan year-on-year. In Q3 alone, ton-period expenses increased by 3 to 50 yuan, with ton-sales/management/financial expenses increasing by 0.1/+5/-2 yuan year-on-year.