July 09, 2025

Xinyi Glass meets the market expectation rating to maintain “extraordinary”

HSBC Global Securities noted that Xinyi Glass (00868.HK), which closed at HK$5.69 with a 2.52% gain, reported a 6.1% decline in net profit last year, aligning with the bank’s expectations. The company's management highlighted that performance in the second half of 2012 indicated a gradual recovery in the industry.

This year, the solar glass division will be restructured as a separate entity, with demand expected to rebound. A previously suspended production line in Wuhan has now resumed operations. The group anticipates a 20% year-on-year increase in the total area of residential buildings constructed on the mainland, which is likely to boost demand for float glass.

With stable costs and a recovery in construction activity, along with controlled production levels, management remains optimistic about the performance of float glass this year. Additionally, the newly launched electronic glass business is expected to contribute positively to the company’s profitability. In response, HSBC raised its 2013-14 earnings per share forecasts by 3% and 5%, respectively. The target price was also increased from HK$6.3 to HK$6.6, while maintaining an "overweight" rating. (Double)

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