Bank of America Securities: Upgraded FLAT GLASS (06865) rating to "Neutral" with a target price of 12.8 Hong Kong dollars.

13:48 30/10/2025

The company still remains concerned about the weak demand for solar energy and the continuous oversupply situation. Following the announcement of its performance, the stock price of Fortlet Glass has risen by 12%, and its valuation is now becoming more reasonable.

Bank of America Securities released a research report stating that the rating of FLAT GLASS (06865) has been upgraded from "underperform" to "neutral" as third-quarter net profit reached 376 million yuan, exceeding expectations, mainly due to a gross profit margin of 16.8%, far exceeding the bank's forecast of 8-9%. The bank raised its profit forecast for FLAT GLASS for the 2026 fiscal year by 55% and increased the target price from 7 Hong Kong dollars to 12.8 Hong Kong dollars. The valuation is based on a forecasted price-earnings ratio of 15.5 times for the 2026 fiscal year, up from 13.5 times, in line with the five-year average. Due to the company's significant profit advantage compared to smaller or domestically focused competitors, the bank believes that the 16-17% gross profit margin in the past two quarters will become the company's new long-term base. However, concerns remain about weak demand for CECEP Solar Energy and the ongoing oversupply situation, and FLAT GLASS's stock price has already risen by 12% after the earnings announcement, with valuation now trending towards reasonable levels.

New China Life Insurance (01336) announced its performance for the first three quarters of the year, with a net profit attributable to shareholders of 32.857 billion yuan, a year-on-year increase of 58.9%.

The Agricultural Bank of China (01288) reported a net profit attributable to equity holders of RMB 220.859 billion in the first three quarters, representing a year-on-year increase of 3.03%.

PICC GROUP(01339) announced its performance for the first three quarters, with a net profit attributable to shareholders of 46.822 billion yuan, an increase of 28.9% year-on-year.

The Agricultural Bank of China (01288) reported a net profit attributable to equity holders of RMB 220.859 billion in the first three quarters, representing a year-on-year increase of 3.03%.

PICC GROUP(01339) announced its performance for the first three quarters, with a net profit attributable to shareholders of 46.822 billion yuan, an increase of 28.9% year-on-year.