Morgan Stanley has released a research report adjusting its outlook for MAOYAN ENT (01896).
The investment bank has reduced its non-IFRS net profit forecast for the company this year by 12%. This adjustment is primarily attributed to increased impairment losses on accounts receivable, as highlighted in the company's profit warning.
Furthermore, due to a slower-than-anticipated recovery in the film industry, Morgan Stanley believes MAOYAN ENT will continue to face accounts receivable risks next year. Consequently, the non-IFRS net profit forecast for the following year has been lowered by 6%.
Reflecting these changes in earnings projections, the target price for MAOYAN ENT has been reduced from HK$6.1 to HK$5.3. The firm has maintained its "Market Perform" rating on the stock.
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