CR Building Material Technology Anticipates Cement Market Recovery and Positions for Growth
CR Building Material Technology (01313.HK) highlighted at its results conference that the cement industry experienced a drop in demand last year but is optimistic about the market rebound.
During its latest results conference, CR Building Material Technology noted a decline in cement demand throughout the previous year but expressed confidence in the sector's potential for recovery.
The company believes cement prices have nearly reached their lowest point and anticipates a rebound. To navigate this period, CR BLDG MAT TEC intends to capture more market share and ensure the bottom line is protected, explicitly stating that it will steer clear of price wars.
The firm also underscored the increasing importance of its cement aggregates business, which it expects to become a key profit driver in the current year. Efforts are being made to ensure projects under construction are commissioned timely, aiming for full production and sales. The expected external sales volume of cement aggregates is projected to reach 80 million tonnes.
One of the notable insights shared was the forecast of a steady decline in coal prices, which could positively impact the company's operating margins. Furthermore, CR BLDG MAT TEC has planned a capital expenditure of RMB 4.823 billion for the year, primarily focusing on developing new businesses and production lines.
Despite the challenging environment marked by decreased demand and fluctuating prices, CR BLDG MAT TEC is positioning itself strategically to leverage the expected market recovery. With significant investments in capacity expansion and new business ventures, the company is laying the groundwork for what it believes will be a compelling growth story once the market stabilizes.
