Morgan Stanley raises CHUANGXIN IND's target price to 39.57 Hong Kong dollars, overseas production capacity expansion drives growth.

Morgan Stanley released a research report stating that it has updated the risk-return assessment of CHUANGXIN IND (02788). The bank has raised its earnings per share forecasts for the years 2026 to 2028 by 7%, 6%, and 5% respectively, and correspondingly raised its target price by 5% from HK$37.57 to HK$39.57, with a rating of "hold". The bank is optimistic about CHUANGXIN IND's overseas capacity expansion driving production growth in the coming years. It believes that the company benefits from China's production capacity restrictions and seeks growth, with plans to build a 1 million ton aluminum production capacity in Saudi Arabia, with the first phase of 500,000 tons already underway and the new capacity expected to start operations in the first quarter of 2027. The bank has updated its models based on the actual performance of the 2025 fiscal year and incorporated the latest price forecasts for aluminum, alumina, and bauxite from the global commodities team, while updating this year's aluminum and alumina production forecasts based on management guidance.