Movement Alert|China National Building Material Falls 5.57% in Regular Trading, Profit-Taking Pressure Continues After Prior Sharp Rally

Market Focus07-06

On July 6, China National Building Material (03323.HK) fell 5.57% in regular trading, trading at HK$4.92/share, with turnover of HK$202 million. The decline represents a continuation of the stock's ongoing correction following a sharp rally in mid-to-late June.

The stock had previously surged — posting a single-day gain exceeding 20% — driven by electronic cloth price hikes of 15%-30% from major producers and tightening supply-demand dynamics fueled by AI computing demand. However, since June 26, the stock has repeatedly experienced single-day pullbacks of 5%-8%, with sustained selling pressure from profit-taking investors.

Within the Construction Materials sector, West China Cement rose 1.96% and Huaxin Building Materials gained 0.15% on the same day, while China National Building Material's decline significantly exceeded the broader industry performance. This divergence suggests the selloff is primarily driven by stock-specific profit realization rather than systemic sector pressure. Citibank maintains a Buy rating with a target price of HK$7.30, noting the stock has not yet fully reflected the revaluation of its electronic cloth and new materials assets.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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