Citi released a research report stating that it lowered Xinyi Glass's (00868) net profit forecast for the 2024-2026 fiscal year (excluding exchange rate adjustments) by 35% to 40%. The target price was lowered from HK$9.6 to HK$7.55, and the rating was downgraded from “buy” to “neutral”.
The bank updated its forecasting model, changed Xinyi Glass's presentation currency from Hong Kong dollars to RMB and took into account the Bank's investment police. The bank's Chinese real estate team made more conservative medium- to long-term assumptions, expecting a 13% drop in real estate completion this year compared to the same period last year.