Zhi Tong Cai Jing·2025-08-29 09:13Core Viewpoint - UBS has downgraded the target price for Jiangsu Ninghu Expressway (00177) to HKD 10.2, maintaining a "Neutral" rating due to disappointing financial performance in the first half of the year [1] Financial Performance - The company's recurring net profit for the first half of the year decreased by 12% year-on-year, falling short of both UBS and market expectations [1] - Excluding the dividend income from Jiangsu Bank in the second half of last year, the recurring net profit still only grew by 2% year-on-year, which is below expectations [1] - The decline in highway traffic volume due to expansion projects significantly impacted revenue [1] Earnings Forecast - UBS has revised down its earnings forecasts for 2025 to 2027 by 7% to 9% due to weak toll revenue performance [1] - The growth potential for dividends from 2025 to 2028 is expected to be limited [1]