UBS released a research report downgrading POLY PPT SER (06049) to "Neutral" rating, as the stock price has reached the bank's set target price, with the current risk-return profile now considered average. The latest target price was slightly raised from HK$36 to HK$36.5.

The bank noted an increase in gross floor area (GFA) contract terminations during the first half of the year, reflecting that the company may have to terminate some projects with persistently declining cash recovery rates or poor profitability quality. This is primarily attributed to intensified competition in the property management industry and the general decline in property management fee rates. If contract terminations continue to increase, this will put pressure on revenue growth.

Consequently, the bank has lowered its 2025-27 revenue forecasts by 2% to 5%, but believes that reduced selling and administrative expenses will offset the impact.