HK Stock Market Move | XINYI GLASS (00868) fell by nearly 3%, with annual net profit expected to decrease by 40%. Citigroup lowered its rating and target price for the company.

XINYI GLASS (00868) fell nearly 3%, approaching 2.74% at the time of writing, at 7.09 Hong Kong dollars, with a turnover of 23.2285 million Hong Kong dollars. In terms of news, XINYI GLASS previously issued a profit warning, expecting a 30% to 40% year-on-year decrease in net profit for the fiscal year 2024. This is mainly due to the sluggish Chinese real estate market, a significant decrease in the number of new property projects, and the demand and market prices for float glass products in China; the loss on the sale of production facilities permanently suspended by the group in China; and a decrease in profits from XINYI SOLAR Holdings Limited, a joint venture company controlled by the company. HSBC Global Research pointed out that the profit warning from XINYI GLASS implies a profit between 4.89 billion and 10.26 billion in the second half of last year, the worst half-year performance in a decade. Citi released a research report stating that it lowered its forecast for XINYI GLASS's net profit (excluding exchange rate adjustments) for the years 2024 to 2026 by 35% to 40%. The target price was lowered from 9.6 Hong Kong dollars to 7.55 Hong Kong dollars, and the rating was downgraded from "buy" to "neutral."