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UBS: Downgrades the target price of Tao Bo to HKD 3.55, management holds a conservative attitude towards the fiscal year 2026.
Jin10 reported on May 23 that UBS's research report indicated that Towngas (06110.HK) is expected to see a year-on-year decline of 7% and 42% in revenue and net profit for the fiscal year 2025, reaching 27 billion and 1.286 billion, respectively. The revenue and net profit for the second half of the fiscal year are projected to be 14 billion and 411 million, in line with the company's previous guidance. Although the dividend performance exceeded expectations, the management's outlook for stable profits in fiscal year 2026 did not meet the bank's expectations. The bank has lowered its target price from HKD 3.6 to HKD 3.55, with a rating of "Buy."