JPMorgan released a research report stating that CHINA STATE CON (03311) reported an 8.4% year-on-year increase in third-quarter net profit after tax, surpassing the bank's expectation of a 5% rise. However, management withdrew its full-year guidance for double-digit earnings growth and positive, sustained operating cash flow due to macroeconomic uncertainties and upcoming funding needs for investments. The company's strategic direction remains unchanged.

Management reiterated its commitment to maintaining positive operating cash flow and a dividend payout ratio of no less than 30%. JPMorgan lowered its 2025 earnings forecast for the company, now projecting an 8% year-on-year increase, implying a 15% rebound in fourth-quarter profit from last year's low base. For 2026 and 2027, the bank revised earnings growth estimates to mid-single digits.

JPMorgan reduced its target price for CHINA STATE CON from HK$15 to HK$13 but maintained an "Overweight" rating.