HK Stock Market Move | XINYI GLASS (00868) fell nearly 4% as demand and market prices for float glass products dropped significantly. Citigroup lowered the company's net profit forecast for the next two years.

XINYI GLASS (00868) fell by nearly 4%, down by 3.98% at the time of writing, at HK$7, with a turnover of HK$41.188 million. On the news front, XINYI GLASS recently issued a profit warning, expecting a 30% to 40% decrease in net profit for the fiscal year 2024. This is mainly due to the sluggish real estate market in China, a sharp decline in demand and market prices for float glass products in China, losses from the sale of production facilities permanently shut down in China, and a decrease in surplus profits from the company's associated company XINYI SOLAR Holdings Limited. Citi released a research report, lowering the forecast for XINYI GLASS's net profit for the fiscal years 2024 to 2026 (excluding exchange rate adjustments) by 35% to 40%. The target price was lowered from HK$9.6 to HK$7.55, and the rating was downgraded from "buy" to "neutral." The bank updated its forecast model, changing the reporting currency of XINYI GLASS from Hong Kong dollars to Renminbi and taking the profit warning into consideration. The bank's China real estate team expects a 13% decrease in completed real estate projects this year compared to the same period last year, making more conservative medium to long-term assumptions.