JPMorgan has released a research report downgrading its investment rating on Beijing Airport (00694) from "Neutral" to "Underweight" and reducing its target price by 40%, from HK$3.00 to HK$1.80. The bank believes the stock is facing short-term challenges due to structural headwinds. The report notes that the stock's removal from the Hong Kong Stock Connect program will create selling pressure on approximately 25% of its issued shares. Regarding operations, the company is projected to report a net loss between RMB 600 million and RMB 760 million for 2025, significantly exceeding market expectations and indicating limited profit recovery. Additionally, the new duty-free contract revenue-sharing ratio of 5% to 8% structurally limits profit margins. JPMorgan believes that a rebound in the stock price would depend on a recovery in profitability and the possibility of the stock being reinstated in the Hong Kong Stock Connect. However, the likelihood of either occurring in the near term is considered low.