HK Stock Market Move | In the second half of the year, profit pressure for photovoltaic glass companies may appear. FLAT GLASS (06865) fell more than 7%, XINYI SOLAR (00968) fell more than 4%.

Photovoltaic glass stocks continue to decline. As of the time of writing, FLAT GLASS (06865) fell by 7.21% to HK$9.26, XINYI SOLAR (00968) fell by 3.16% to HK$2.76, and XINYI GLASS (00868) fell by 1.19% to HK$6.64. Huatai released a research report stating that in the first half of the year, the income and net profit of glass companies as a whole showed a downward trend. Although the cost of soda ash has decreased, the price of float glass has continued to decline since the second quarter. The price increase of photovoltaic glass in April-May briefly boosted the profitability of some photovoltaic glass companies in the second quarter, but the sharp price drop since June may put significant pressure on future profits. The report pointed out that production capacity of float glass in the second quarter decreased slightly, but as of September 5, inventory remains high. The release of supply of photovoltaic glass in the second quarter led to a temporary increase in production capacity. Since July, a wide range of maintenance has alleviated some supply pressure. However, with no clear improvement in demand, it is expected that glass companies will face profit pressure in the second half of the year, and the pace of further maintenance by glass companies will still need to be monitored.