JPMorgan Cuts Fuyao Glass Target Price to HK$50 After Weak Q3 Performance

Stock News10-23

JPMorgan has released a research report stating that Fuyao Glass Industry Group Co.,Ltd. (03606) delivered third-quarter 2026 results that fell short of market expectations.

The bank has lowered its earnings forecasts for 2026 and 2027 by 7% and 6% respectively, reduced its target price from HK$60 to HK$50, and maintained a "Neutral" rating on both the A-share and H-share of Fuyao Glass Industry Group Co.,Ltd. (03606).

The weaker-than-expected third-quarter performance was primarily attributed to lower average selling price growth, higher selling expenses, and a higher effective tax rate.

During the conference call, management emphasized that the normalization of overseas aftermarket procurement, continued product upgrades, and improved capacity utilization are key supports for growth in 2027.

The bank noted that management expects global automobile production to remain roughly flat or achieve slight growth in 2027, with Fuyao Glass Industry Group Co.,Ltd. (03606) set to benefit from a further increase in overseas market share.

The bank considers the valuation reasonable and expects limited catalysts going forward.

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