On June 20th, Morgan Stanley released a report, predicting that China Railway's net income will increase by 1% and 4% in the next two years, reaching 35.7 billion yuan and 38.2 billion yuan, respectively. The bank predicts that the company's revenue growth rate this year will slow to a low single digit on a yearly basis, due to pressure from local government collections, and estimates that the company's operating cash flow will decline annually; the gross profit margin is expected to remain stable. Morgan Stanley raised China Railway's target price slightly from HKD 6.1 to HKD 6.2, rating it as "shareholding".