Morgan Stanley updated its rating for Tingyi (Cayman Islands) Holding Corp. to an Equalweight status while raising the target price from HKD12.3 to HKD13.5. The adjustment reflects slightly lower earnings forecasts for the next two years, influenced by improved gross margins from the recovery in the noodles business, offset by rising PET prices in beverages and increased promotional expenses. The company's gross profit trends are also dependent on macroeconomic conditions in the Middle East, with potential risks if PET prices remain high due to regional conflicts.
