Lyon has released a research report downgrading JXR's (01951) revenue forecasts for 2025-2027 by 12% to 20%, and net profit forecasts by 27% to 31%, with an expected net loss in 2025, reflecting the first-half 2025 performance and a cautious 2025 outlook. Based on revised forecasts and a higher target P/E ratio, the target price has been reduced from HK$3.8 to HK$3.5.
Lyon noted that JXR's first-half revenue declined 11%, recording a net loss of RMB 1 billion, primarily due to overseas asset impairments. The company believes all headwinds have subsided in the first half and expects the second half to show improvement compared to the first half.
Lyon maintains a neutral outlook for JXR in 2025 but expects the company to return to a growth trajectory in 2026-2027. According to revised forecasts, Lyon expects JXR's revenue to decline 4% year-over-year in 2025, then recover with growth of 10% in 2026 and continue rising 14% in 2027.