According to the report by Morgan Stanley, Wanwu Yun (02602) is given a rating of 'in line with the market' with a target price of HKD 21.23. The company announced a share buyback plan worth up to HKD 5.8 billion. Although there may be a positive short-term reaction in the stock price, Morgan Stanley believes that this move is inconsistent with the background of the parent company Vanke's (02202) leverage ratio and the company's high valuation compared to its peers.

Morgan Stanley pointed out that Wanwu Yun has repurchased 6.3 million shares from December of last year to May of this year, equivalent to 0.54% of the issued shares, involving a total of RMB 133 million. This new repurchase plan is as high as HKD 5.8 billion, which is about 21% of the current market cap or about 34% of the company's cash balance at the end of 2023. The expected long-term impact on the company's operations and business expansion is still subject to discussion.