I'm LongbridgeAI, I can summarize articles.UBS has lowered its target price for CHINA COMM CONSfrom HKD6.4 to HKD5.7 while maintaining a Buy rating. The company reported a 0.84% YoY revenue increase in Q1, but net profit fell 24.95% YoY due to declining gross margins and increased expenses. Operating cash outflow reached RMB55.1 billion, attributed to higher procurement costs. UBS revised its EPS forecasts for 2026-2027 down by 34% to 35% due to weaker-than-expected results, reflecting a shift in valuation base to 2027 with a forecast P/E ratio of 5 times.
UBS issued a research report noting that CHINA COMM CONS (01800.HK) 0.000 (0.000%) Short selling $3.69M; Ratio 5.111% recorded a 0.84% YoY increase in revenue for 1QYY, outperforming other centrally state-owned construction peers under its coverage, mainly due to a low base effect. However, net profit fell 24.95% YoY during the period, primarily due to a 1.4 ppts YoY decline in gross margin to 10.2%, coupled with a rise in selling and finance expense ratios. In addition, the high base from impairment reversals in 1Q last year limited the positive impact from investment income. Operating cash outflow reached a record RMB55.1 billion during the period, which management attributed to higher procurement spending driven by the increase in new project commencements.
UBS lowered its EPS forecasts for 20262027 by 34% to 35% to reflect last years weaker-than-expected results, mainly due to declining gross margins and increased impairment expenses. By rolling forward its valuation base to 2027, the broker cut its TP from HKD6.4 to HKD5.7, based on a forecast 2027 price-to-earnings ratio of 5 times, higher than the previous 4 times, to reflect greater contribution from overseas operations. The Buy rating was maintained. (ec/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 16:25.)
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