--------------------------------------------------------------------------------
Last Update as at 23 Sep 11:08 (HKT)DJ MARKET TALK: MS Tips Lonking "Well On Recovery Track"
1102 [Dow Jones] STOCK CALL: Morgan Stanley upgrades Lonking (3339.HK) to Overweight from Equal-weight, keeps target price unchanged at HK$5.50. Tips worst behind, with company "well on recovery track." Views shares' 15% fall after 1H09 profit warnings as an overreaction, expects clear recovery in construction machinery demand in 2H when China's overall construction activity - mining, infrastructure and property - should trend up amid ample liquidity support. Adds, also expects pricing stabilization, industry consolidation, which good for long-term industry structure. Lonking +7.2% at HK$4.00.(RLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com