Morgan Stanley Releases Research Report That Congolese (03759.HK) Third-Quarter Results Show The Company Is Accelerating Its Recovery, Recorded Third-Quarter Revenue Of RMB 3.2 Billion, Up 10% YoY, Significantly Improving 1% YoY Over The Last Quarter, And Gross Margin Increased 0.8 Percent YoY, Mainly Benefited By Laboratories And CMMs Improved profitability of C services. Adjusted net profit for the third quarter fell 13.2% year-on-year to RMB0.417 billion, in line with the bank's expectations.

Management announced that it adjusted its revenue growth target for the second half of this year to 10% YoY and expected a similar increase next year. Bulking Orders grew 18% YoY in the first three quarters, reflecting the accelerated pace of recovery in the third quarter. Duma expects Cannolate's earnings growth to reverse in the coming quarters, and continued improvement in orders and revenue growth could pave the way for double-digit growth next year, reinstating the “upside” rating of H shares, raising the target price of H shares from $15.7 to $24.2.