HK Stock Market Move | FLAT GLASS (06865) up over 8% in early trading, third quarter performance exceeds expectations. Institutions estimate that the company's inventory is decreasing rapidly.

Flat Glass (06865) rose over 8% in the morning session, up 5.64% to HK$11.43 as of the time of publication, with a turnover of HK$588.121 million. On the news front, Flat Glass Group announced that it achieved a revenue of 4.73 billion yuan in the third quarter, a year-on-year increase of 21% and a sequential increase of 29%, with a net profit attributable to the parent company of 376 million yuan, a year-on-year turnaround and an increase of 143% sequentially, exceeding expectations. Sinolink released a research report stating that the company achieved operating income of 4.73 billion yuan in the third quarter, a significant increase of 29% sequentially. The company's shipment volume of photovoltaic glass increased significantly on a sequential basis in Q3, and it is expected that the company will accelerate inventory reduction in Q3, with the inventory balance at the end of Q3 decreasing by 751 million yuan to 1.207 billion yuan. The bank pointed out that the company's profitability remains at a relatively high level. In June-July, the photovoltaic glass industry accelerated its cold repair process, with 7,750 tons/day of cold repair production lines in July, and the domestic in-production capacity decreased to 89,000 tons/day; after the price increase in August-September, there has not been a significant increase in production capacity/restarts, and the domestic in-production capacity remains at a low level. As a link with a relatively low level of excess in the photovoltaic main and auxiliary materials, the current capacity has significantly decreased from its peak in the past, and with the gradual introduction of backward enterprises, market clearance is expected to accelerate.