Jefferies: Lowering the target price of Xiying (00625) to HK$23 to maintain “outperforming the market” rating

The Zhitong Finance App learned that Jefferies released a research report saying that Xiying (00625)'s revenue for the first half of the year was in line with expectations, but the regional mix was poor, and profit margins were the main focus. It believes that the market's consensus forecast for 2026-2027 still has room to decline. The target price was lowered from HK$26 to HK$23, maintaining a “outperforming market” rating.

The bank currently estimates that the company's adjusted net profit for 2026-2027 is US$1,155 million and US$1,432 million, respectively, which is 22% and 25% lower than market expectations, but it is expected that the market will lower its forecast in the same direction.

The bank anticipates that the market will initially lower the 2026-2027 profit forecast by about 15-20% and 10-15%, respectively. After the results for the third quarter of 2026 confirm the weakening of European business, it will usher in a second round of cuts.