Morgan Stanley Raises China Jinmao Price Target to HK$1.91 on Improved Profit Outlook

Stock News08-28 14:34

Morgan Stanley has raised its price target for China Jinmao (00817) by 7%, from HK$1.79 to HK$1.91, while maintaining an "Overweight" rating on the stock. The bank's latest research report highlights that the company's interim results reflect improving gross margins and a more favorable earnings outlook.

According to the report, China Jinmao's ample saleable resources in first-tier and key second-tier cities will support its contracted sales performance to outperform its peers this year and next. The company's strategic land bank position is seen as a competitive advantage in the current market environment.

Morgan Stanley has revised its earnings per share forecasts for China Jinmao for the 2026 to 2028 period, increasing them by 14%, 7%, and 1%, respectively. The upward adjustments reflect improved average selling prices in contracted sales, which are driving higher gross margins in the property development segment. Additionally, the revisions account for revenue recognition from urban renewal projects and better-than-expected savings in selling and administrative expenses, as well as interest costs.

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