1100 GMT - Huitongda's net profit margin will likely widen as restructuring starts to bear fruit, say CGS International analysts. The logistics service company has been cutting its low-margin and unprofitable businesses. Given the restructuring, CGS expects Huitongda's sales to remain under pressure, falling 10% in 2H compared with 1H's 26% decline, before swinging to positive year-over-year growth in FY 2026. The analysts cut their FY 2025-2027 EPS forecasts by 11.3%-14.6% to account for weaker toplines. However, net profit will likely rise 18% in 2H compared with an 11% increase in 1H, and net profit margin will likely rise to 0.6% in FY 2025. CGS raises Huitongda's target price to HK$17.40 from HK$15.20 and retains an add rating on its stock, which closed at HK$14.94. (jason.chau@wsj.com)

(END) Dow Jones Newswires

September 18, 2025 07:00 ET (11:00 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.