Morgan Stanley lowered the target price of Bawang International (1338.HK) from HK $2.75 to HK $2.10, rating it as underweight.

Big Motors Index, so far, there is no sign of recovery in Bawang's sales, while promotion expenses have dealt a blow to its performance, lowering its performance forecast per share. It is expected that its loss per share for 10 years will be RMB0.03, and its earnings per share forecast for 11x12 will fall to RMB0.05 and 0.09 yuan. Bawang issued a profit warning a few days ago, and turnover is expected to drop 48% year-on-year from July to December last year.

Bawang fell 6.72 per cent to HK $2.50 yesterday.