Daiwa: Raises target price of China Communications Construction to 5.2 Hong Kong dollars, expected to benefit from industry upturn.cycle

According to the China Fortune Financial News App, Morgan Stanley released a research report stating that it has raised its sales forecast for China Communications Construction Group (01157.HK) for 2025 and 2026 by 1% each to reflect the growth in sales of earthmoving machinery and concrete machinery driven by the upward trend in the domestic industry cycle, but lowered the sales forecast for aerial work platform products. The gross profit margin forecast has been raised by 0.4%, 0.3%, and 0.3 percentage points respectively, and the earnings per share forecast has been raised by 4%, 2%, and 1% accordingly. Morgan Stanley expects that the domestic recovery trend is still weak and unbalanced, with uncertainties remaining in global economic recovery and tariff policies. Competition in emerging markets may intensify, and the company's sales growth is expected to face challenges. The target price has been slightly raised from 5.1 Hong Kong dollars to 5.2 Hong Kong dollars, with a rating of "in line with the overall market."