Morgan Stanley has updated its risk-reward assessment for CHUANGXIN IND (02788). The firm raised its earnings per share forecasts for 2026, 2027, and 2028 by 7%, 6%, and 5%, respectively. Consequently, the target price was increased by 5% from HK$37.57 to HK$39.57, with an "Overweight" rating maintained. The bank is optimistic about CHUANGXIN IND's overseas capacity expansion, which is expected to drive production growth in the coming years. The company is benefiting from capacity constraints in China and is actively pursuing growth opportunities. It plans to establish 1 million tonnes of aluminum capacity in Saudi Arabia, with the first phase of 500,000 tonnes already underway. The new capacity is targeted to commence operations in the first quarter of 2027. Morgan Stanley has updated its financial model based on the actual 2025 fiscal year results and incorporated the latest price forecasts for aluminum, alumina, and bauxite from its global commodities team. The bank also revised its aluminum and alumina production forecasts for the current year in line with management guidance.