HX Building Materials Surges Over 5% in Morning Trading; Huatai Securities Maintains 'Buy' Call

Deep News09-08

Shares of HX BLDG MAT (06655) climbed more than 5% during Friday morning trading. As of the latest update, the stock had gained 5.24%, trading at HK$17.48 per share, with turnover reaching HK$43.0386 million.

For the first half of 2026, HX BLDG MAT reported revenue of RMB 19.497 billion, marking a 21.5% year-on-year increase. Net profit attributable to shareholders surged 55.2% to RMB 1.713 billion. Notably, overseas cement clinker sales reached 13.18 million tonnes, an exceptional 57.1% jump year-on-year, with per-tonne gross profit of RMB 241—an improvement of RMB 58—significantly outperforming domestic operations.

The company's announcement showed overseas revenue for the period hit RMB 9.01 billion, representing a substantial 103.6% increase from the prior year period.

In a research report, Huatai Securities noted that the first-half net profit attributable to shareholders came in moderately above the midpoint of the company's pre-earnings announcement range. The broker highlighted that HX BLDG MAT continues to advance its global expansion strategy, with overseas production capacity steadily scaling up. This creates a positive cycle of "low-cost acquisitions, cost reduction with output gains, and cash flow generation," which is expected to drive medium-to-long-term earnings growth. Huatai Securities maintains its "Buy" rating on the stock.

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