Citigroup: lowers target price of Fuyao Glass A-shares, lowers revenue and net profit forecasts

Citi's research report stated that under industry volatility and global supply chain pressure, Fuyao Glass is expected to achieve strong performance again in 2025. After revising their forecasts, the bank has lowered Fuyao Glass's target price for Hong Kong-listed shares from 92 HKD to 81 HKD and for A-shares from 90 RMB to 79 RMB, while maintaining a "buy" rating. The company demonstrates its defensive leadership position in the global automotive glass industry, with continuously increasing average selling prices, expanding market share, and strict cost control supporting steady profit margin expansion. The bank has lowered Fuyao Glass's revenue forecast for the next two years by 2% to reflect the weak performance of the Chinese passenger car market since the beginning of the year; while also lowering gross margin forecasts to 36.6% and 37% to reflect rising raw material costs, with a gross margin forecast for 2028 at 37.3%. The bank has also lowered the company's net profit forecast for the next two years by 9% to 11% to 10.06 billion and 11.7 billion RMB respectively, with a net profit forecast for 2028 at 13.78 billion RMB.