CHINA STATE CON(HK:03311) Xin Lang Cai Jing·2025-10-30 08:28Core Viewpoint - Morgan Stanley's research report indicates that China State Construction International (03311.HK) reported a year-on-year net profit growth of 8.4% in Q3, exceeding the expected 5% growth [1] Financial Performance - The management has withdrawn the guidance for double-digit profit growth for the full year and maintaining positive operating cash flow due to macroeconomic uncertainties and upcoming investment funding needs [1] - Despite the withdrawal of guidance, the company's strategic direction remains unchanged, with management reaffirming the commitment to maintain positive operating cash flow and a dividend payout ratio of no less than 30% [1] Earnings Forecast - Morgan Stanley has lowered its earnings forecast for China State Construction International for 2025, now expecting an 8% year-on-year growth, which implies a 15% rebound in Q4 earnings compared to the low base of 2024 [1] - For 2026 and 2027, Morgan Stanley has adjusted the earnings forecast to mid-single digits [1] Target Price and Rating - The target price has been reduced from HKD 15 to HKD 13, while maintaining an "Overweight" rating [1]