HK Stock Market Move | FLAT GLASS (06865) falls more than 5%, the industry's loss-making shipping situation is still difficult to ease, the company's fourth-quarter profit may continue to be under pressure.

FLAT GLASS (06865) fell more than 5%, as of the time of reporting, it dropped 5.6% to HK$11.12, with a turnover of HK$77.85 million. In terms of news, according to Baichuan Yingfu, entering December, with the continuous reduction of production capacity of photovoltaic glass and some companies announcing significant production cuts at the end of November, the price of photovoltaic glass has been supported. While glass manufacturers are determined to maintain prices, there has been a slight price adjustment. However, even if the price falls to HK$12 per square meter, it is still difficult to alleviate the loss-making situation for companies. Currently, the average price of 2.0mm photovoltaic glass is 5 yuan per square meter lower than the price of HK$17 per square meter in January 2024, a drop of 29.41%. At present, photovoltaic glass companies continue to operate at a loss, and their willingness to invest in production capacity is low. Guoyuan International previously released a research report stating that FLAT GLASS achieved operating income of 14.604 billion yuan in the first three quarters, a decrease of 8.06% year-on-year; achieving a net profit attributable to the parent company of 1.296 billion yuan, a decrease of 34.18% year-on-year, and achieving a non-net profit of 1.245 billion yuan attributable to the parent company, a decrease of 36.02% year-on-year, with basic earnings per share of 0.55 yuan. The company's net profit attributable to the parent company in Q3 was -203 million yuan, due to the continuous decline in the price of photovoltaic glass and impairment effects, and it is expected that profitability will continue to be under pressure in Q4.