Morgan Stanley: Raises the target price of YUEXIU PROPERTY to HKD 6.25 and adjusts the core earnings forecast for this year to 2026

Morgan Stanley's research report indicates that considering YUEXIU PROPERTY announced the sale of an office asset, recording a post-tax profit of HKD 8.76 million, which will be accounted for within the year, it has adjusted its earnings forecast for the company from this year to 2026. The bank has lowered this year's contracted sales by over 3% to HKD 111.2 billion, reflecting a year-on-year decline of 21%, to account for the disappointing pre-sales. The bank has also reduced its gross profit forecasts for 2025 and 2026 by 0.9 percentage points due to the continued decline in property prices. Additionally, the bank has adjusted its core earnings forecasts for this year to 2026, increasing by 12.1%, decreasing by 3.3%, and decreasing by 3.9%, respectively; along with the company's recent land purchases, it has raised the target price by 14% to HKD 6.25, with a rating of "Overweight."