CICC maintains its "outperform" rating on XINYI GLASS (00868) and lowers its target price to HK$8.5.

CICC issued a research report stating that XINYI GLASS (00868) maintains an "outperform" rating, with the target price lowered by 11% to HK$8.5. XINYI GLASS's performance last year was below the bank's expectations, with a significant decrease in interest expenses. Operating cash flow increased by 25% year-on-year to 5.6 billion RMB, and the dividend yield of 5% is attractive. The bank lowered its earnings forecast for this year by 22% to 0.67 RMB per share, and expects earnings per share to be 0.68 RMB next year. CICC pointed out that last year, the selling price of XINYI GLASS's float glass products fell more than the cost, putting pressure on profits in the second half of the year. The value and volume of automotive glass units increased, with orders and profits rising together, solidifying the earnings foundation. Revenue from architectural glass remained stable, with the decline in raw material prices contributing to resilient profits. Taking into account the adjusted earnings forecasts and the fact that float glass has entered the industry's bottom cycle, there may be potential for valuation recovery in the future.