UBS: Lowering China Railway Construction (01186.HK) target price to 5.1 Hong Kong dollars. Rating "neutral"

According to the WiseFinancial APP, UBS released a research report stating that China Railway Construction (01186.HK) saw a 6% decrease in first-quarter revenue and a 14% decrease in recurring net profit compared to the same period last year. Recurring profit was lower than the bank and market expectations, mainly due to weak gross profit margins. The gross profit margin decreased from 7.8% in the first quarter of 2024 to 7.5% in the first quarter of 2025. To reflect profits lower than expected in the first quarter of 2024 and 2025, UBS lowered the stock's 2025 target price-earnings ratio from 3.4 to 3.3 times, cutting the target price by 9% to 5.1 Hong Kong dollars, with a "neutral" rating.