Core Viewpoint - Morgan Stanley has upgraded its forecasts for China CNR (01766, 601766.SH) and CRRC Times Electric (03898, 688187.SH) based on strong order acquisition in Q3, improved demand visibility, and a shift towards cyclical growth in the industry [1][2] Group 1: Company Performance - China CNR's H-share target price has been raised from HKD 6.8 to HKD 8, while its A-share target price has been slightly decreased from CNY 10.1 to CNY 10 [1] - CRRC Times Electric's H-share target price has increased from HKD 43 to HKD 50, and its A-share target price has risen from CNY 59 to CNY 68 [1] - Both companies have maintained a net cash position and exhibit strong operating cash flow generation capabilities [2] Group 2: Market Trends - Since July, the average H-share price of China CNR and CRRC Times Electric has increased by approximately 30%, compared to a 10% rise in the Hang Seng Index [1] - The A-share prices have risen by 15%, while the CSI 300 Index has increased by 18% during the same period, indicating investor confidence in the improving fundamentals of the industry [1] - The railway fixed asset investment has shown a year-on-year increase of 6% over the past eight months, and passenger volume has grown by 7% during the peak summer travel period, contributing to healthier order reserves and more predictable earnings [2]