C&D INTL GROUP (HKEX: 01908) shares are trading higher by more than 3%. At the time of writing, the stock is up 2.58% to HK$16.33, with a turnover of HK$113 million.

A research report from Morgan Stanley highlights that, according to CRIC data, the company's May contracted sales attributable to equity holders grew by 13% year-on-year. This performance significantly outpaced the 2% year-on-year decline seen among the top 20 property developers.

This improvement has helped narrow the year-to-date cumulative decline in attributable equity sales for the first five months to 5%. The investment bank expects the company's share price to rise relative to its industry peers over the next 30 days, estimating a probability of over 80% for this scenario.

Morgan Stanley noted that, supported by a high-quality pipeline of salable resources, the strong sales momentum in key cities like Shanghai, Hangzhou, and Beijing is anticipated to continue. Coupled with a low base effect in the second half of the year, the firm forecasts full-year attributable equity contracted sales to grow by approximately 5% year-on-year.

This projection implies a roughly 15% year-on-year increase in attributable sales for the second half. Such a performance is expected to bolster market confidence in the company's ability to achieve a net profit compound annual growth rate between 13% and 17% for the 2026 and 2027 fiscal years, alongside a dividend yield of 7% to 8%, which is among the highest in the sector.