Morgan Stanley released a report, raising its net profit forecast for China Railway (00390.HK) in the next two years by 1% and 4%, respectively, to RMB 35.7 billion and RMB 38.2 billion. The bank expects the company's revenue growth to slow down to low single digits this year due to the pressure of local government collections, and estimates that the company's operating cash flow will decline year-on-year, while the gross margin is expected to remain stable.

The bank raised China Railway's target price from HKD 6.1 to HKD 6.2 and rated it as "shareholding".