UBS lowered the target price of UBS Hotel (0045.HK) from HK$14.5 to HK$14.4, but maintained the buying rating. The company announced on Friday that the underlying net profit for 2009 decreased by 61% to HK$315 million, compared to HK$807 million in 2008. Due to poor performance in 2009, UBS lowered the Grand Hotel's expected earnings per share for 2010, 2011 and 2012 from HK$0.41, HK$0.49, and HK$0.52, respectively, to HK$0.3, HK$0.4, and HK$0.46, respectively. The main reason was the expected increase in financial costs and more cautious cost expectations. UBS's forecast is 19%-30% lower than the market's general expectations. At the same time, UBS also adjusted the reference period for the company's net asset value per share from 2010 to 2011. It expects the net asset value per share to be HK$19.9 in 2010 and HK$22.1 in 2011. The stock closed up 0.5% to HK$11.68 on Thursday.