Morgan Stanley expects that the stock price of China Traditional Chinese Medicine will decline in the next 30 days

Morgan Stanley published a technical research report indicating that it believes the stock price of China Traditional Chinese Medicine (00570.HK) will decline in the next 30 days, with the probability of this occurring estimated to be between 70% and 80%. The rating is "Underweight," with a target price of HKD 1.50.

Morgan Stanley stated that the expected stock price fluctuation is due to a profit warning, as the company anticipates recording a loss for the fiscal year 2025, which would be the first since 2013. The firm believes that, facing the challenge of a shrinking market size, the company has not disclosed specific plans for expanding into new markets through internal resources or acquisitions. Therefore, the market currently has low visibility regarding the company's performance in 2026, and it is expected that the stock price still has further downside potential