Lyon: Cut Forefront Glass target price to 10 Hong Kong dollars, maintaining "outperform the market" rating.

Lyon pointed out that the net profit of Folate Glass in the first quarter turned positive to 1.06 billion yuan, compared to a net loss of 2.89 billion yuan in the fourth quarter of 2024. This was due to the overall reduction in industry supply and the surge in Chinese solar installations driving up average selling prices. However, the bank expects that starting from May this year, the demand for solar energy will weaken due to the impact of marketization of renewable energy electricity prices, thus lowering the company's net profit forecast for the years 2021 to 2027 by 15% to 21%. The bank has lowered Folate Glass's target price from HK$14 to HK$10, but maintains an "outperform market" rating based on its strong position in cost leadership.