UBS released a research report stating that following CHINA CINDA's (01359) release of its first-half financial results, the bank has updated its forecasts for the company. UBS lowered its earnings per share estimates for this year and next year by 53% and 60% respectively, reaffirmed its "neutral" rating on the stock, and slightly reduced its 12-month target price from HK$1.45 to HK$1.42, implying a 2026 estimated price-to-book ratio of 0.31x.
UBS stated that CHINA CINDA's core distressed asset management business remains the main drag on its operations, affected by weak market sentiment leading to unsatisfactory disposal turnaround and ongoing asset quality risks. According to company management guidance, asset quality risks from existing business may still require one year to digest.
UBS forecasts that CHINA CINDA's net profit will resume modest growth starting from 2026, primarily benefiting from asset quality stabilization.