Intelligence Financial APP learned that CICC released a research report stating that due to the fair value revaluation loss of esr's assets exceeding expectations, its attributable net income for 2024-25 was downgraded by 108% and 55% to -0.036 billion USD and 209 million USD. The bank believes that the company's business operations are expected to benefit from potential interest rate cuts in overseas markets, and the fundamentals may begin to stabilize. It maintains an "outperform the industry" rating. However, on the other hand, due to the uncertainty of short-term privatization matters, a cautious attitude is taken towards the target price, maintaining a target price of 12.11 HKD.

The report cited the company's 1H24 performance: attributable net income (PATMI) turned negative to a loss of -0.219 billion USD, lower than the bank's and the market's expectations. The bank stated that it is concerned about the impact of interest rate cuts on the company's operating pace. The company disclosed that it continues to focus on disposing of assets and non-core businesses and plans to recover approximately 2.9 billion USD within 12-18 months. At the end of 1H24, the company still held unpaid capital of 23.7 billion USD, which will continue to be used for project investments in the future. Looking ahead, the bank believes that overseas interest rate cuts are expected to promote the recovery of the company's investment and financing business.