Core Viewpoint - Morgan Stanley's report indicates that Greentown China (03900) is adopting a more balanced approach to reduce its land reserve risks, which may slow down its real estate sales growth next year and negatively impact profit recovery due to lower-than-expected gross margin performance [1] Group 1: Company Performance - The company's valuation is considered too expensive, leading to a downgrade from "Overweight" to "Underweight" with a target price reduction from HKD 11.62 to HKD 8.55 [1] - Greentown China is expected to take longer than anticipated to restore profits to levels seen before the decline in 2022 [1] Group 2: Earnings Forecast - Earnings estimates for the group from 2025 to 2027 have been reduced by 15%, 35%, and 22% respectively, reflecting weak real estate sales and a slowdown in profit margin recovery [1]
大摩：降绿城中国评级至“减持” 削目标价至8.55港元