Glonghui, September 12 | According to the Morgan Stanley Research Report, domestic housing stock earnings for the first half of the year were generally in line with expectations, and property development profits were disappointing. It is believed that under uncertain property sales, profit pressure will continue until 2026, and investors are advised to choose defensive state-owned enterprises. In the Daimo Index, profits may continue to be sluggish in the second half of the year, even though a low base in the second half of last year helped reduce the year-on-year decline. The bank lowered its earnings per share forecast for the entire industry from this year to 2026 by 10%, 10%, and 12%, respectively, to reflect three major factors, including weak sales prospects, continued pressure on gross profit, and slowing recurring revenue. The bank still favors property management companies such as China Resources Vientiane Life and Poly Property over developers. Investors are advised to continue to own defensive state-owned enterprises, such as China Resources Land, Greentown China and China and overseas. The bank lowered C&D International Group's target price to HK$16.81, with a rating of “hold”; China's Jinmao target price was raised from HK$0.54 to HK$0.67, with a rating of “in sync with the market”; the target price for Xincheng Development was raised from HK$1.39 to HK$1.63, with a rating of “increased holdings”; and Vanke Enterprise's target price was lowered from HK$5.15 to HK$3.52, with a rating of “in sync with the market”.