Hong Kong railway Company drops 0.42% Morgan Stanley to maintain its reduction of HK $20

The Hong Kong Railway Corporation (00066-HK) has fallen 0.42% to HK $23.95 for a transaction of HK $30.4339 million, which is now running a small market, with a slight rise of 0.07%.　　Morgan Stanley maintained its reduction rating, but raised its target price from HK $15.30 to HK $20 (though still below its current value of HK $4), as a result of the 1%/21% of earnings forecasts for the 09/10 fiscal year, based on a positive view of the housing market in Hong Kong and the expected increase in average selling prices. But Morgan Stanley said the current valuation of the company was close to its peak, equivalent to a 23 times-fold price-to-earnings ratio of 10 and a 1.3 times-fold share value. added that the unit had been running for similar property stocks since March, warning that the situation would continue.