Morgan Stanley has issued a research report giving C&D INTL GROUP (01908) an "overweight" rating with a target price of HK$23.51. The firm stated that C&D INTL GROUP will launch its flagship project in Shanghai's Yangpu district in the fourth week of this month, expecting the sales rate for the first batch of units to exceed 90% with a net profit margin above 10%. The potential success of this project will further demonstrate the company's continued excellent sales performance amid significant profit margin recovery, enhancing visibility for a 7% to 9% dividend yield. The firm expects the stock price to rise 5% to 10% following the related sales, based on investors' strengthened confidence in the company's gradual gross margin recovery to high double digits by 2027, translating to a projected PE ratio of 7-8x under a projected earnings compound annual growth rate of over 15% from 2024 to 2027. The firm expects the probability of this occurring to be as high as over 70%.