Dahua Jixian: Downgrade China OVS PPT (02669) rating to "hold", target price lowered to 4.3 Hong Kong dollars.

Dahua Jixian released a research report stating that it is expected that the net profit attributable to CHINA OVS PPT (02669) in 2025 will decrease by 9.5% year-on-year. This is based on the pressure on gross profit margins, continued weakness in engineering services, and a deterioration in receivables, which offset revenue growth. Due to the downward revision of profit forecasts and limited short-term catalysts, the bank has downgraded the rating of CHINA OVS PPT to "hold" and lowered the target price from 7 Hong Kong dollars to 4.3 Hong Kong dollars. At the same time, the bank expects annual revenue to increase by 5.4% year-on-year, with basic property management revenue increasing by 9.9% year-on-year, driven by rapid expansion in urban service businesses. However, the bank expects community value-added services and non-resident value-added services revenue to decline by 8% and 10% respectively, mainly due to industry downturns and more cautious consumer spending.