Citigroup: Cuts target price for Fuyao Glass Industry Group (03606) to 81 Hong Kong dollars, maintains "buy" rating.

Citibank released a research report stating that Fuyao Glass Industry Group (03606) is expected to achieve strong performance again in 2025 amid industry fluctuations and global supply chain pressures. After revising the forecast, the bank has lowered the Hong Kong stock target price of Fuyao Glass Industry Group from 92 Hong Kong dollars to 81 Hong Kong dollars, and the A-share target price of Fuyao Glass Industry Group (600660.SH) from 90 Chinese yuan to 79 Chinese yuan. The company demonstrates its defensive leadership position in the global automotive glass industry, with steadily increasing average selling prices, expanding market share, and strict cost control supporting steady profit margin expansion. The bank maintains a "buy" rating. The bank has lowered its revenue forecast for Fuyao Glass Industry Group for the next two years by 2% to reflect the weak performance of the Chinese passenger car market since the beginning of the year; meanwhile, gross margin forecast has been adjusted to 36.6% and 37%, reflecting rising raw material costs, with a gross margin forecast of 37.3% for 2028. Therefore, the bank has lowered its net profit forecast for the company for the next two years by 9% to 11%, to 10.06 billion and 11.7 billion Chinese yuan, with a net profit forecast of 13.78 billion Chinese yuan for 2028.