UBS: Lowering China Railway Construction's target price to HK$5.1, first quarter profits lower than expected.

UBS published a report stating that China Railway Construction's first quarter revenue and net profit decreased by 6% and 14% respectively compared to the same period last year, with net profit lower than both the bank's and market expectations, mainly due to weak gross profit margin. Gross profit margin decreased from 7.8% in the first quarter of 2024 to 7.5% in the first quarter of 2025. To reflect lower-than-expected first quarter earnings, UBS lowered the stock's target price-to-earnings ratio for 2025 from 3.4 to 3.3 times and the target price by 9% to 5.1 Hong Kong dollars, maintaining a "neutral" rating.