Lyon: Downgrade Country Garden Service target price to 6.7 Hong Kong dollars, while rating is upgraded to "outperform the market".

Lyon released a research report stating that Country Garden Service's gross profit increased by 0.7% last year, marking the first growth in the past four years. The management team expects that profits have bottomed out last year and core profits will recover this year. The bank believes that the company's profits and cash flow are stable, providing the management team with room to use net cash reserves to enhance shareholder returns. The bank has lowered its earnings forecast for Country Garden Service in 2026 and 2027 by 4.7% and 8.5% respectively, and has reduced the target price from HK$7.1 to HK$6.7. However, due to the attractiveness of the company's earnings and potential for growth, the rating has been upgraded from "Hold" to "Outperform the Market".