The Zhitong Finance App learned that Morgan Stanley released a research report stating that the target price for Conch Enterprise (00586) was lowered by 22.7% to HK$6.4 from HK$8.28 to maintain the “in sync with the market” rating. From now on, the bank will no longer cover conch companies, mainly due to resource reallocation.

Damo said that Conch Venture is a top environmental solutions provider, focusing on the waste-to-energy (WtE) business since 2022. It entered the battery materials business, producing battery cathode and anode materials. The bank's final investment rating for conch companies was “in sync with the market”, mainly due to the lack of catalysts for attractive and low-yield waste-to-energy businesses, potential overcapacity and continued profit pressure on the battery materials industry, while the debt ratio continued to rise.