Morgan Stanley has issued a research report adjusting its earnings per share forecasts for CHINA RES MIXC (01209) for the 2026 to 2028 period, trimming them by 0.5%, 1.2%, and 2.5% respectively.

These revisions reflect the company's solid first-half performance, a resilient commercial management business that faces slower retail sales growth due to nationwide consumption headwinds, and the ongoing cost control measures that have lowered the selling and administrative expense ratio.

The investment bank has marginally raised its price target on the stock from HK$48.02 to HK$48.06, based on a forecast dividend yield of 4.7% for 2026 and a 100% payout ratio, which translates to a 2027 projected price-to-earnings multiple of 20 times. The "Overweight" rating has been maintained.

Morgan Stanley highlights that CHINA RES MIXC is a leader in the shopping mall market, benefiting from a robust project pipeline and proven operational strengths. The firm is optimistic about its commercial property management segment, powerful mall operation capabilities, and stable growth prospects.

Non-luxury brands are identified as a primary growth driver, while an increasing contribution from the commercial sector is enhancing the profit mix, which could support a valuation re-rating over the long term. The bank anticipates a dividend yield of 5% for 2026 with a 100% payout ratio, offering high visibility.