CHINA RES MIXC (HKEX: 01209) shares rose more than 4% in trading. At the time of writing, the stock was up 3.67% to HK$42.88, with a turnover of approximately HK$49.15 million.

The upward movement follows a recent research report from Morgan Stanley, which assigned a high probability of over 80% for the stock's price to rise within the next 30 days. The firm cited the stock's significant recent pullback as making its short-term valuation notably more attractive.

Key Drivers Behind the Positive Outlook

Morgan Stanley suggested the market has been overly concerned about a potential slowdown in the company's same-store sales growth. This worry stemmed from recent softness in luxury goods and gold sales.

The bank argued that CHINA RES MIXC is relatively insulated from these trends. This resilience is attributed to the company's strategic expansion over recent years, which has significantly increased its exposure to mid-to-low-end consumption and its presence in second-tier and leading third-tier cities.

Financial Performance and Growth Forecasts

As a result, Morgan Stanley expects the company to still achieve its guidance for high single-digit same-store sales growth. It estimates growth for May will be in the mid-single digits, compared to a year-on-year increase of approximately 10% for the first four months of the year.

For the full year, the bank forecasts earnings per share growth of around 11% to 14%. This growth is anticipated to be driven by continued market share gains, the opening of new shopping malls, and margin expansion resulting from operating leverage.