Citi: Lowers XINYI GLASS (00868) target price to HK$8.1, maintains "Neutral" rating

Citi issued a research report stating that it has lowered the target price for XINYI GLASS (00868) from HK$10.3 to HK$8.1, maintaining a "Neutral" rating. The bank revised its revenue forecasts for the company for 2026 to 2028 by 1% to 2%, and lowered its gross margin forecasts due to oversupply in float glass, correspondingly cutting its net profit forecasts for each year from 2026 to 2028 by 3% to 8%, to RMB 2.534 billion, RMB 2.934 billion, and RMB 3.615 billion, respectively. The bank noted that XINYI GLASS is in a transitional phase, with the decline in new housing supply in China's real estate market continuing to drag on its float glass and architectural glass businesses. Although the impact of rising costs on the first half of 2026 is limited, the bank expects that, given that raw material inventories have been depleted and natural gas costs have been further raised due to monopolistic supply, the related pressure will emerge more noticeably in the second half of the year.