Gelonghui, November 17 | UBS published a research report stating that due to a slowdown in earnings growth prospects, Xuhui Yongsheng Service maintains the “selling” rating of Xuhui Yongsheng Services. The bank pointed out that Xuhui Yongsheng Service's net profit for mid-2023 and 2022 declined by 36% and 22% year-on-year respectively, mainly due to the decline in community value-added services and non-owners' value-added business revenue during the period, as well as the contraction in gross margin. Considering the slowdown in the delivery speed of the parent company Xuhui's projects, as well as the shrinking market and intense competition for third-party projects, it is predicted that the expansion of the company's new contract management area will continue to slow. Accordingly, UBS lowered Xuhui Yongsheng Service's profit forecast for 2023-2025 by 59% to 67%, which is 31% to 32% lower than the market's general expectations, while the target price was reduced from HK$3.4 to HK$1.15.