HK Stock Market Move | FLAT GLASS (06865) is now down by nearly 4%. The average price of photovoltaic glass has fallen below production costs. Institutions say first-quarter profits will continue to be under pressure.

FLAT GLASS (06865) is currently down nearly 4%, with a decrease of 3.65% at the time of writing, trading at HKD 11.62 with a turnover of HKD 254.6 million. In terms of news, XINYI SOLAR issued a profit warning earlier, expecting a 70% to 80% decrease in net profit for the year ending December 31, 2024 compared to 2023. Morgan Stanley believes that the company will continue to be weak in the short term, as solar glass manufacturers have been actively maintaining production lines due to weak demand. Additionally, with the holidays in January, there is still significant supply pressure in the short term. HSBC released a research report stating that the latest industry data shows that since November 2024, the average selling price (ASP) of leading solar glass products has fallen below production costs, leading to short-term profit pressure for the solar glass industry due to weakening product prices, rising costs, and asset impairment. The bank has revised down its shipment volume forecast for FLAT GLASS from 2024 to 2026 by 2% to 10%, and profit forecast down by 16% to 47%.