UBS Cuts CHINA RAILWAY TP to HKD4.3, Maintains Buy Rating
I'm LongbridgeAI, I can summarize articles.UBS has lowered its target price for CHINA RAILWAYfrom HKD4.5 to HKD4.3 while maintaining a Buy rating. The company reported a decline in revenue and net profit of 5.45% and 27.65% YoY, respectively, in 1Q26, attributed to its focus on traditional infrastructure and domestic projects. UBS adjusted its EPS forecasts for the current and next year down by 33% due to weaker-than-expected results for 2025, despite noting the company's strong quality control resilience.
UBS said in a research report that CHINA RAILWAY (00390.HK) +0.050 (+1.319%) Short selling $80.86M; Ratio 23.818% recorded revenue and net profit declines of 5.45% YoY and 27.65% YoY, respectively, in 1Q26. Revenue growth was slightly lower than that of CHINA COMM CONS (01800.HK) +0.010 (+0.227%) Short selling $3.69M; Ratio 5.111% , mainly due to the companys strategic focus on traditional infrastructure and the launch of domestic projects.
The broker noted that despite revenue and profit adjusting in line with the industry, CHINA RAILWAY demonstrated strong resilience in quality control. However, it lowered the groups EPS forecasts for this year and next year by 33% to reflect weaker-than-expected 2025 results. The TP for CHINA RAILWAYs H-shares was reduced from HKD4.5 to HKD4.3, while the Buy rating was maintained. (hc/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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