UBS has released a research report indicating a reduction in the price target for SHANGRI-LA ASIA (00069) from HK$4.55 to HK$4.29, while maintaining a "Neutral" rating on the stock.
The company's first-half revenue performance aligned with expectations. Management retains a cautiously optimistic outlook for the industry in the second half of the year, although it anticipates short-term volatility stemming from geopolitical conflicts and extreme weather conditions.
In response to persistent macroeconomic uncertainties and a trend of consumer downgrading, the bank has lowered its diluted earnings per share forecasts for 2027 and 2028 by 7% and 12%, respectively, now projecting US$0.05 and US$0.06. Projections for 2026 remain largely unchanged at US$0.05.