According to a report released by UBS, the bank lowered the 2012-14 earnings forecast for Dalian Port (02880-HK) from 0.15 yuan (same below), 0.17 yuan, and 0.19 yuan to 0.14 yuan, 0.16 yuan, and 0.18 yuan, respectively, and lowered the target price of the stock from 2.82 yuan to 2.6 yuan, reflecting the bank's conservative expectations for the oil, container, and iron ore business, as shipments of these products have been weaker than expected so far this year. UBS also pointed out that although the profit of the port of Dalian has not been ideal so far this year, the bank has a positive attitude towards the company's long-term development prospects after 2014. UBS expects financial deleveraging and organic growth will contribute to the company's profits starting in 2014 as the company's free cash flow turns positive and the peak capital expenditure period ends. UBS maintains the “buy” rating of the port of Dalian. UBS believes that the recent sale of loss-making assets by Dalian Port to its parent company has had a positive impact. This move will help improve asset returns while reducing debt burdens. Furthermore, the parent company is happy to accept this asset as an indication of its support for the port of Dalian. UBS expects a similar asset sell-off to further boost the company's return on equity.