HK Stock Market Move | FLAT GLASS (06865) rose more than 3%. The price of photovoltaic glass in September was raised. Institutions expect further enhancement of profit margins for the company.

FLAT GLASS (06865) rose by more than 3%, as of press time, it rose by 3.56% to HKD 12.21, with a turnover of HKD 57.8546 million. Changjiang released a research report stating that the price of 2.0mm photovoltaic glass in September has increased by 2 yuan/square meter compared to the beginning of August. On one hand, the improvement in supply and demand of photovoltaic glass is better than expected, and industry inventory days continue to decline; on the other hand, the rise in component prices has been established, providing room for price increases in auxiliary materials. The outlook for the photovoltaic glass industry is good, and the profit level of Flat Glass Group as a leading company is better than the industry average, with the potential to lead the profit recovery in the main chain. If the subsequent component production recovers, the expectation of margin improvement in profitability will be further enhanced. China Securities Co., Ltd. pointed out that looking forward to Q3, as the industry has already balanced supply and demand after actively reducing production earlier, and there is a strong anti-cyclical sentiment in the industry, photovoltaic glass in September is trying to raise prices. If successful, it is expected that the company's net profit will turn from loss to profit on a single basis. Photovoltaic glass is a highly self-disciplined link in the photovoltaic industry chain, with a long-term dynamic balance between supply and demand expected. In the short term, the market focus is on whether the glass price increase in September can be implemented and its sustainability, and it is also necessary to continue monitoring the acceptance by downstream customers and the situation of photovoltaic glass production resuming.