JP Morgan: Downgrades HASHKEY HLDGS (03887) rating to "neutral" with target price lowered to HK$5.

J.P. Morgan released a research report stating that it has downgraded HASHKEY HLDGS (03887) from "overweight" to "neutral" and reduced its target price from 9 Hong Kong dollars to 5 Hong Kong dollars, a decrease of 44%. The bank pointed out that the performance of HashKey in the second half of 2025 was mixed, with revenue 6% lower than expected, mainly due to a decrease in gross profit margin. Although trading volume and market share data exceeded expectations, the bank still lowered the company's revenue forecast for 2026 and 2027 by 19% and 21%, partially reflecting the weakening of cryptocurrency prices and market sentiment from the beginning of the year to now. It is expected that the operating trends of the company in the first half of 2026 will still be challenging, and HashKey's gross profit margin may remain at a relatively low level. The report stated that although HashKey has a strong market leadership position in Hong Kong and expansion plans, with the revenue outlook becoming more uncertain and investor willingness to invest in high-beta and loss-making companies decreasing in a risk-averse environment, the stock price is expected to face pressure.