UBS said it lowered the 2012-14 profit forecast for Dalian Port (02880-HK) by 4-6% to reflect that interest expenses were higher than expected, the profit contribution affected by container business was lower than expected, and the completed petrochemical throughput of the oil terminal was weaker than expected. The Group's net profit for the first half of the year fell 11% year on year to 300 million yuan. Among them, the second quarter fell 28% year on year and 24% quarter on quarter. Earnings for the first half of the year accounted for 45% and 41% of the bank's and market's full-year forecasts, respectively. The bank said it was cautious about the business performance of Dalian Port in the third quarter. There was no sign of recovery in oil terminal throughput, and strong container terminal business growth was difficult to turn into profit. However, the bank still maintains a positive long-term view of the Group and expects revenue to begin to recover in 2013/14, driving operating leverage and expecting strong profit growth. Although its target price was lowered from 2.96 yuan to 2.82 yuan, “buying” was maintained.