HK Stock Market Move | FLAT GLASS (06865) is now up more than 4%. The photovoltaic glass industry has actively reduced production during the low season. The speed of inventory day reductions may accelerate.

FLAT GLASS (06865) surged more than 4%, with a 4.15% increase to HK$13.06 at the time of writing, with a turnover of HK$90.4388 million. In terms of news, FLAT GLASS previously released its performance data. The company's operating income from January to September was 14.604 billion yuan, a year-on-year decrease of 8.06%; net profit attributable to shareholders was 1.296 billion yuan, a year-on-year decrease of 34.18%. In the third quarter alone, the company's operating income was 3.908 billion yuan, a year-on-year decrease of 37.03% and a quarter-on-quarter decrease of 21.37%; net loss attributable to shareholders was 203 million yuan, marking the company's first loss since going public. China Securities Co., Ltd. pointed out that the photovoltaic glass industry has actively reduced production capacity through cold repairs, and the growth rate of photovoltaic glass inventory days has slowed down. The firm stated that in the past 2 months, the industry has been reducing production capacity at a rate of approximately 600t/d per week. When the industry inventory days reach around 25 days, there will be upward pressure on photovoltaic glass prices. According to the current rate of cold repairs and assuming a monthly production capacity of 50GW for components, it is expected that by April next year at the latest, the inventory days of photovoltaic glass can decrease to 25 days. However, if the speed of cold repairs accelerates or demand for components exceeds expectations, the rate of decrease in inventory days will also accelerate.