UBS: Lowered the target price of China Railway (00390.HK) to 4.2 Hong Kong dollars, maintained a "buy" rating.

According to the Wisdom Financial News APP, UBS released a research report stating that China Railway (00390.HK) saw a 6% drop in revenue and a 23% drop in net profit in the first quarter of this year compared to the same period last year. Overall new contracts decreased by 10% year-on-year, mainly due to limited growth potential in traditional sectors and the continued bottoming out of the real estate industry. At the same time, the company is actively changing its strategy, focusing more on quality than on expanding scale. The highlight was a 33% year-on-year increase in overseas new contracts, benefiting from significant growth in the Asian and African property markets and railway projects. The bank lowered its earnings forecast for the company from 12% to 15% for the years 2020 to 2027, and reduced the target price from 4.8 Hong Kong dollars by 12% to 4.2 Hong Kong dollars, maintaining a "buy" rating.