Morgan Stanley: Raises the target price of CHINA JINMAO (00817) to HKD 1.91 as earnings prospects are improving.

Morgan Stanley has released a research report stating that it has raised the target price for CHINA JINMAO (00817) by 7% from HK$1.79 to HK$1.91, maintaining an "Overweight" rating. Morgan Stanley pointed out that CHINA JINMAO's interim performance reflects improving gross margins and profit prospects. The company has ample sellable resources in first-tier and major second-tier cities, which will support its contracted sales performance this year and next year, surpassing that of its peers. Morgan Stanley has raised its earnings per share forecasts for CHINA JINMAO for 2026, 2027, and 2028 by 14%, 7%, and 1% respectively, to reflect the improvement in average selling prices for contracted sales driving up gross margins in property development, the recognition of sales from urban renewal projects, and better-than-expected savings in selling, administrative, and interest expenses.