Citi: Downgrades Fengli Group (06865.HK) with a target price of HK$7.5, maintaining a "hold" rating.

According to the Zhitong Finance APP, DBS released a research report stating that FULAIT GLASS (06865.HK) turned a loss into a profit in the first quarter of this year, exceeding expectations, with gross profit improving due to strict cost control and lower gas costs. The bank stated that although the company actively controls costs to reduce production costs and improve gross profit, they are still concerned about the entry of new production capacity into the market, which may affect the upward potential of glass average selling prices in the medium term. Therefore, the bank has lowered its revenue expectations for FULAIT GLASS for the next two years by about 18%, leading to a 40% reduction in profit forecasts. The bank expects FULAIT GLASS's profit to decline by 8% this year, with a rebound of 33% in 2026, but the recovery will take longer than expected, lowering its H-share target price from 12.5 Hong Kong dollars to 7.5 Hong Kong dollars, maintaining a "hold" rating.