China National Building Materials (CNBM) - August 2019

In the first half of 2019, CNBM’s subsidiary Sinoma International reported a 12.38 per cent YoY jump in operating income to CNY11.33bn (US$1.58bn). Net profit over the same period advanced by 16.1 per cent to CNY752m. Meanwhile, CNBM’s Beijing New Building Materials (BNBM) subsidiary saw an 0.8 per cent YoY increase in operating income to CNY6.04bn over the same six-month period, while its net profit fell from a profit of CNY1.29m in the 1H18 to a loss of CNY691.4m a year later.

According to CNBM Chairman, Cao Jianglin, cement demand in China is expected to rise in the second half of this year, compared to the first half, on the back of government hints of an increase in investment. The second half is also traditionally the stronger part of the year for construction growth in China. Cement pricing is also expected to improve over the 2H19.