HK Stock Market Move | CNBM (03323) rises by over 4% again, Bank of America claims asset impairment is a one-time nature, further impairment space is limited.

CNBM (03323) rose by over 4% again, up 3.47% to HKD 5.67 as of the time of writing, with a turnover of HKD 76.4596 million. On the news front, CNBM recently issued a profit warning, expecting a net loss attributable to shareholders of up to about 4 billion yuan in 2025, compared to a net profit attributable to shareholders of approximately 2.387 billion yuan in 2024. According to preliminary estimates by appraisal agencies, it is estimated that the provision for impairment of related assets to be recognized in 2025 will be approximately 6 to 8.3 billion yuan. Bank of America Securities issued a research report stating that CNBM's loss is far beyond the bank's expectations. The bank believes that the expectation of a 5% dividend yield for the full year 2025 is at risk. The bank believes that this impairment of assets is a one-time event. With the cement production capacity substitution window set to close at the end of March, there is limited room for further impairment; hence, the bank maintains a "buy" rating on CNBM, based on its profit growth in the new materials business and its long-term proactive overseas expansion strategy, with a target price of HKD 5.7.