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Investing.com - UBS downgraded Bank of Changsha (SSE:601577) stock rating to Neutral from Buy on Tuesday, while setting a price target of RMB9.90.
The downgrade follows what UBS described as a "sizable weakening" in Bank of Changsha’s net interest margin (NIM) and asset quality in the second quarter of 2025 earnings report, compared to its A-share regional bank peers.
UBS noted that other regional banks reported narrower NIM declines and maintained steadier asset quality on average during the same period.
The investment bank projects further deceleration in revenue and net profit after tax (NPAT) growth for Bank of Changsha in full-year 2025, estimating flattish revenue growth and a modest 2.7% year-over-year increase in NPAT, compared to 1.6% and 5.2% growth respectively in the first half of 2025.
UBS cited "sustained pressure on NIM and asset quality, combined with softer revenue and NPAT growth expectations than most peers" as the key factors behind its downgrade decision.
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