China National Building Material (3323.HK) Net Loss Slightly Narrows in 3Q26

CNBM reported a 9M26 attributable net loss of Rmb728mn, slightly better than its preliminary guidance of a Rmb760mn loss, versus a Rmb2.96bn profit in 9M25. Its 3Q26 net loss was Rmb67mn, compared with net profit of Rmb1,383mn in 3Q25 and a net loss of Rmb484mn in 2Q26. Cement remained the key earnings drag, with Tianshan Cement continuing to record losses in 3Q26, while non-cement businesses provided stronger support. CNBM sold 58mt of cement and clinker in 3Q26, down 5% YoY and flattish QoQ; ASP was Rmb200/t, down 16% YoY and 7% QoQ, with unit cost at Rmb198/t and GP/t of Rmb2/t, down 96% YoY and 88% QoQ. The non-cement business contributed approximately Rmb1,328mn in profit, up 67% YoY and 18% QoQ, mainly driven by China Jushi's strong earnings growth. Adjusted net gearing was 106%, up 1ppt YoY. The shares trade at 0.2x 2026E P/B, below the historical average. Rated Buy with a target price of HK$4.90.