According to the Securities Times app, Morgan Stanley released a research report stating that it rates China Railway (00390) as a "shareholding" with the target price lowered from 6.2 Hong Kong dollars to 5.6 Hong Kong dollars. It believes that the company will benefit from the 10 trillion yuan local government debt swap plan over 5 years, coupled with accounts receivable turnover and improvements in operating cash flow, which may trigger further re-rating.

The bank stated that it has respectively lowered the revenue forecasts for China Railway for the fiscal years 2024 to 2026 by 8%, 10%, and 11%, taking into account lower-than-expected construction activities this year and a slight erosion of gross margin. Net income forecasts have been correspondingly reduced by 11%, 12%, and 14% to 32 billion, 34 billion, and 35 billion yuan.