UBS has released a research report announcing a reduction in the target price 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 market expectations. Management retains a cautiously optimistic outlook for the industry in the latter half of the year, although it anticipates that extreme weather conditions could introduce short-term volatility.
The investment bank has lowered its diluted earnings per share forecasts for Shangri-La Asia for the 2027 and 2028 fiscal years by 7% and 12%, respectively, to US$0.05 and US$0.06. This adjustment reflects persistent macroeconomic uncertainties and ongoing consumption downgrade trends. The forecast for 2026 remains largely unchanged at US$0.05.