Morgan Stanley has issued a research note expressing a high degree of confidence that the share price of C&D INTL GROUP (01908) will rise in absolute terms over the next 30 days, with a probability exceeding 80%.

This outlook is based on the company's anticipated contract sales for July, which are projected to show a year-on-year increase of over 50%, reaching approximately RMB 10 billion.

The strong performance is attributed primarily to the successful launch of the Hangzhou Wangtianji project, which sold out quickly, coupled with steady sales from other ongoing projects.

It is estimated that these factors will contribute around RMB 7 billion in sales for the month, with about RMB 4 billion already achieved to date.

The report highlights that this sales growth is expected to significantly outpace the industry average, especially against a backdrop where primary home sales area in major cities has only seen single-digit year-on-year growth.

Consequently, this robust performance is projected to narrow the year-to-date decline in the company's cumulative contract sales to a 4% year-on-year decrease, an improvement from the 10% decline recorded in the first half of the year.