HK Stock Market Move | CNBM (02323) rose more than 5%, with a year-on-year narrowing of 65.67% in the first quarter net loss attributable to the mother. Morgan Stanley is positive about the company's continued growth in new materials business.

CNBM (03323) rose more than 5%, as of the time of publication, it rose 4.63% to 5.2 Hong Kong dollars, with a turnover of 513.96 million Hong Kong dollars. On the news front, recently, CNBM released its first quarter report for 2026, with the company achieving a total operating income of 35.767 billion yuan (same unit), a year-on-year decrease of 2.37%; a net loss attributable to the owners of the parent company of 177 million yuan, a year-on-year narrowing of 65.67%. Morgan Stanley pointed out that CNBM's net loss in the first quarter was 177 million yuan, compared to a loss of 517 million yuan in the first quarter of 2025, in line with the preliminary performance forecast. The report attributed the improvement in performance to the increase in average selling price of glass fiber and cost reduction, coupled with the increase in sales volume of electronic fiber and battery diaphragms, offsetting the drag on profit from the decline in cement prices and reduced profits in the engineering sector. Morgan Stanley expects the trend to continue in the second quarter, with growth in sales volume and average price in the new materials business, while the basic building materials sector is still plagued by a decline in sales volume and gross profit per ton due to weak demand and increased price competition, until specific supply-side policies are introduced and implemented.