China National Building Material Company Limited (3323.HK) stock analysis

In our weekly check, China National Building Material Company Limited is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 8 pass, warnings: 4, red flags: 11.

About China National Building Material Company Limited

China National Building Material Company Limited is a Basic Materials company (Construction Materials) based in China, listed on HKSE as 3323.HK.

What our checks show for 3323.HK

Red flags

• Net debt is 7.2x a year of EBITDA (debt/equity 2.62). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 8.1 points over 5 years, to -1.9%: the company keeps less of each sale as profit.
• The gross margin fell by 5.1 points, to 18.7%: costs are rising faster than prices.
• Revenue fell 8.7% a year over the last 3 years.
• Earnings per share fell 20.1% a year over the last 3 years.
• The company is losing money: the net margin is -1.9%.
• China National Building Material Company Limited pays a dividend while losing money: it is funded from reserves or debt.
• The price swings a lot: 60.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 95% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.5%.

Warning signs

• Analysts expect only about 3.7% a year of growth in revenue.
• Free cash flow is only 4.6% of revenue.
• The stock is still below its previous peak.
• Beta 1.28: the stock usually moves more than the market, both up and down.

Strengths

• Operating cash flow is 6.73x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 11.4% a year over the next years.
• Analysts expect the net margin to improve by 4.3 points from today's -1.9%.
• The share count fell by 10% in 2 years: the company buys back its own shares.
• Actively traded: about 35.4 million shares a day.
• Pay in shares is only 0.1% of free cash flow.

Similar companies

AMRZ · HEI.DE · KRX.IR · JHX · MAS · CX

Questions

What grade does China National Building Material Company Limited (3323.HK) have?

In our weekly check, China National Building Material Company Limited is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 8 pass, warnings: 4, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3323.HK stock?

This week's biggest flags for China National Building Material Company Limited: High debt, Weak interest cover, Margins falling. In total 15 of 23 checks show a warning or a red flag.

What does China National Building Material Company Limited do?

China National Building Material Company Limited is a Basic Materials company (Construction Materials) based in China, listed on HKSE as 3323.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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