Core Viewpoint - Morgan Stanley's research report indicates that Kowloon Development's rental income improved in the first half of the year, but management remains cautious about the outlook for the second half, anticipating a low single-digit decline in retail renewal rents, which aligns with market expectations [1] Group 1: Financial Performance - The management revealed that retail sales began to improve from May, with Harbour City merchants outperforming the market average [1] - The company believes it is necessary to observe the situation for a few more months to confirm whether the market has fully bottomed out [1] Group 2: Market Conditions - The decrease in HIBOR has led to reduced financing costs, and there may be slight improvements in rental income in the second half of the year [1] - Morgan Stanley currently forecasts a 1% and 2% growth in earnings per share and dividends for Kowloon Development in the fiscal year 2025, respectively [1] Group 3: Investment Rating - Morgan Stanley maintains an "Overweight" rating for Kowloon Development, with a target price of HKD 27.5, which corresponds to approximately a 50% discount to the net asset value (NAV) per share [1]