HK Stock Market Move | CNBM (03323) rises by more than 10% again, the impairment of assets is a one-time occurrence, and the profitability of the industry is expected to moderately recover under anti-upward pressure.

CNBM (03323) surged by over 10%, as of the time of publication, it increased by 10.76%, reaching 6.28 Hong Kong dollars, with a turnover of 541 million Hong Kong dollars. On the news front, CNBM recently issued a profit warning, with expected shareholders' net loss of up to about 4 billion yuan by 2025, primarily due to asset impairment of 6 to 8.3 billion yuan related to cement capacity replacement. Bank of America Securities issued a research report stating that the loss exceeds the bank's expectations. The bank believes that the expected full-year dividend yield of about 5% in 2025 is at risk. The bank believes that this asset impairment is one-off in nature. With the cement capacity replacement window set to close by the end of March, further impairment opportunities are limited. Zhongtai issued a research report stating that the cement industry is actively implementing regulations to strictly produce according to design capacity, with actual clinker capacity decreasing from 2.1 billion tons to 1.6 billion tons, driving industry capacity utilization rates to recover. Although supply and demand are still mismatched, higher capacity utilization rates correspond to easier off-peak production, and industry net profit per ton is expected to continue to increase, thereby driving industry profit growth sustained.