Core Viewpoint - UBS has raised the target price for China Merchants Port (00144) from HKD 16.9 to HKD 17.5, reflecting better-than-expected container volumes and a decrease in the weighted average cost of capital under the assumption of a risk-free interest rate [1] Group 1: Financial Forecasts - UBS has increased the net profit forecast for China Merchants Port for the years 2025 to 2027 by 1% to 3% [1] - The company is expected to see a 6% year-on-year increase in recurring net profit for the first half of the year, driven by healthy growth in container volumes and a 3-4% increase in port charges both domestically and internationally [1] Group 2: Profit Adjustments - Despite the expected growth in recurring net profit, UBS anticipates a 9% year-on-year decrease in the company's net profit for the first half of the year due to abnormal items, including a net change in the fair value of financial assets/liabilities amounting to HKD 298 million and a compensation of RMB 317 million from a shipping company related to investments in Togo last year [1]

Group 1 - UBS raised the target price for China Merchants Port (00144) from HKD 16.9 to HKD 17.5, reflecting better-than-expected container volumes and a decrease in the weighted average cost of capital under the assumption of a risk-free rate [1] - UBS expects China Merchants Port's recurring net profit for the first half of the year to increase by 6% year-on-year, driven by healthy growth in container volumes and a 3-4% increase in port charges both domestically and internationally [1] - Despite the positive outlook, UBS anticipates a 9% year-on-year decrease in the company's net profit for the first half due to abnormal items, including a net change in the fair value of financial assets/liabilities of HKD 298 million and compensation of RMB 317 million from a shipping company related to its investment in Togo last year [1]