Morgan Stanley downgraded Bawang Group (1338.HK)'s rating from increased holdings to reduced holdings, and lowered the target price from HK$7.00 to HK$3.50. The bank warned that Bawang faced great difficulties. There are three reasons: first, the 10-year interim results were 22% lower than the forecast value, which caused people to worry that the company's core business had slowed down before the dioxane incident in mid-July; second, media reports on dioxane affected consumer perceptions, and Bawang's sales would take some time to recover; third, the possibility of being downgraded due to the company's disappointing performance and uncertainty about the recovery in sales, the stock may be downgraded by the securities bank. Morgan Stanley said he believes Overlord can overcome the crisis and eventually return to the path of growth, but this will take time. The stock fell 9.76% yesterday to close at HK$3.70.