Bank of China International raised Fuyao Glass's 2024-2025 net profit forecast to 7.3 billion and 8 billion yuan.
The Zhitong Finance App learned that Bank of China International released a research report stating that it reaffirmed Fuyao Glass's (03606) “buy” rating and raised the 2024-2025 net profit forecast by 4 to 6% to 7.3 billion yuan and 8 billion yuan, respectively, to reflect higher gross margin assumptions, and raised the target price to HK$68. Considering the company's profit performance that continues to exceed expectations and will continue to strengthen its leading position in the global automotive glass industry in the medium to long term, the bank believes that the current valuation is not expensive.
The bank expects Fuyao's total revenue for the third quarter to maintain its quarterly growth trend and exceed RMB 10 billion for the first time, mainly due to seasonal improvements in the domestic market and strong demand from overseas markets. Excluding the impact of exchange, core net profit for the third quarter is expected to rise to 2.1 billion yuan quarterly, reaching a record high of 2.1 billion yuan on a quarterly basis, driven by an increase in gross margin. The gross margin will increase to over 38% on a quarterly basis.
