Huatai Securities: Slightly lowers Xinyi Glass target price to HK$9.54, maintains "buy" rating.

Huatai Securities released a research report stating that Xinyi Glass achieved revenue and net profit attributable to shareholders of 9.82 billion and 1.01 billion respectively in the first half of this year, with a year-on-year decrease of 11.6% and 59.3% respectively. The net profit attributable to shareholders is in line with performance expectations. The main factors for the annual decline in performance are the year-on-year decrease in float glass prices, the decline in investment income of Xinyi Optical Energy, and an increase in asset impairment losses. The bank believes that as a leader in float glass, the company has scale and cost advantages, and its diversified layout in areas such as automotive glass is expected to help the company's medium and long-term development. They maintain a "buy" rating with a target price lowered slightly from 9.60 Hong Kong dollars to 9.54 Hong Kong dollars. Considering the continued downward trend in float glass prices, the bank has lowered its assumption on the average selling price of Xinyi Glass float glass, leading to the adjustment of earnings forecasts per share for 2025 to 2027 from 0.72, 0.83, and 0.93 yuan to 0.51, 0.62, and 0.74 yuan.