Zhi Tong Cai Jing·2025-08-20 06:51Core Viewpoint - Morgan Stanley has downgraded the earnings forecasts for Kowloon Development (00004) for the fiscal years 2025 to 2027 by 13%, 7%, and 9% respectively, due to weak performance in the first half of the year and challenging market conditions [1] Financial Performance - The company's earnings forecasts for fiscal years 2025 to 2027 have been reduced by 13%, 7%, and 9% respectively [1] - Despite the downgrades, the company is expected to maintain a stable dividend policy, projecting a dividend of HKD 0.4 per share from 2025 to 2027 [1] Market Conditions - The latest predictions for retail and office rental rates, occupancy rates, and interest rates have influenced the earnings forecast adjustments [1] - The company faces a challenging operating environment, which has been reflected in the revised earnings outlook [1] Valuation and Rating - Morgan Stanley has raised the target price for Kowloon Development from HKD 18.4 to HKD 19, while maintaining a "Reduce" rating [1] - The increase in target price reflects the strong balance sheet of the company, despite the challenging operational outlook and unattractive valuation [1]