Zhi Tong Cai Jing·2025-09-05 03:58Core Viewpoint - Morgan Stanley has adjusted its profit forecasts and target price for China Overseas Land & Investment (00688) due to the continuous decline in mainland property prices leading to a decrease in profit margins [1] Summary by Relevant Categories Profit Margin Adjustments - The bank has lowered its gross margin forecasts for China Overseas for the years 2025 to 2027 by 0.1 percentage points each, now predicting margins of 16.4%, 19.7%, and 22.7% respectively, compared to 17.7% in 2024 [1] Core Earnings Forecasts - The core earnings forecast for 2025 has been reduced by 0.6%, while the forecasts for 2026 and 2027 have been increased by 0.2% and 3.0% respectively [1] Target Price Revision - Morgan Stanley has raised the target price for China Overseas from HKD 13.2 to HKD 13.7, which reflects a 30% discount to the predicted net asset value per share for this year, maintaining a "market perform" rating [1]