Why is China National Building Material stock falling today?

China National Building Material Co Ltd's stock tumbled by 3.6% to HK$2.94 on Thursday following the company's announcement of a profit warning for the nine months ending September 30. The warning revealed an anticipated unaudited loss of around RMB 760 million for the period, in contrast to a profit of approximately RMB 2.96 billion in the same timeframe last year.

The significant turnaround was attributed to reduced selling prices across major product lines including cement, ready-mixed concrete, and aggregate, alongside a decline in sales volumes for these goods. Additionally, the company reported an increase in asset impairment provisions. This profit warning adds to a series of declining financials, as China's property market and infrastructure demand have remained weak.

CNBM has been grappling with sluggish demand for construction materials since the COVID-19 pandemic began in early-2020. The broader Hong Kong market did not provide much support, with the Hang Seng Index falling by 1.1% amid losses in technology stocks.