Zhongtong Finance app learned that Morgan Stanley released a research report stating that due to the unclear prospects of Stella Holdings (01836) next year, its rating was downgraded from "outperform" to "underperform" and the target price was lowered from HKD 15.6 to HKD 11.4.

According to the report, Stella's sales in the second quarter increased by 5.7% year-on-year, but the average selling price dropped by 5%. The company also announced good news, expecting net income in the first half of the year to reach at least $90 million, a year-on-year increase of at least 63%. Management expects low-to-mid double-digit growth in net income for the full year, which means that net income in the second half of the year will fall by 14% to 22% year-on-year.