Morgan Stanley: Lower WEIGAO GROUP (01066) target price to HK$4.5, rated "inline with market"

Morgan Stanley released a research report stating that it will lower its revenue forecast for WEIGAO GROUP (01066) for the years 2026 to 2028 by 1 to 2% to reflect the ongoing challenges faced by the company's consumable business in the face of volume-based procurement (VBP) and competition, as well as the recent policy impact on the orthopedic business. Overall revenue is expected to see low single-digit growth. Morgan Stanley has lowered its earnings forecast per share for WEIGAO GROUP in 2026 to 2028 by 11.8%, 12.6%, and 13.5% respectively, with the target price lowered from 5.2 Hong Kong dollars to 4.5 Hong Kong dollars, and maintains a "market perform" rating.