HK Stock Market Move | FLAT GLASS (06865) fell nearly 6% in morning trading as gross margin and asset impairment weighed on results; Q3 loss exceeded the first-half loss.

FLAT GLASS (06865) fell nearly 6% in morning trading. As of press time, it was down 4.26% at HK$4.95, with turnover of HK$12.9118 million. On the news front, Flat Glass Group released its results. In the first three quarters of this year, Flat Glass Group achieved operating revenue of approximately RMB9.582 billion, down 23.12% year-on-year; net loss attributable to shareholders of the listed company was RMB836 million, turning from profit to loss year-on-year. In the third quarter, the company's net profit attributable to parent was a loss of RMB473 million, down 225.6% year-on-year; net profit attributable to parent after deducting non-recurring gains and losses was a loss of RMB505 million, down 226.6% year-on-year. Huatai pointed out that Q3 single-quarter revenue was in line with our expectations, but the loss exceeded our expectations and also exceeded the cumulative loss in 26H1, mainly due to provision for asset impairment losses and energy cost increases exceeding expectations, which led to gross margin turning negative. Although short-term industry demand remains weak, and supply-side capacity cold repairs and inventory declines are relatively slow, the company has strong cost advantages. Considering high profit elasticity once supply and demand stabilize, maintain "Overweight".