China Glass is China's leading manufacturer of flat glass and coated glass, focusing on float glass and covering multiple market segments at the same time. At present, the company has 13 production lines in eight major production bases, with a daily capacity of 6900 tons per day, accounting for about 4% of the national production capacity.

The glass market is expected to pick up gradually: the current domestic flat glass market is affected by factors such as the postponement of the terminal project and the shortage of funds in the market, the quantity of float glass inventory rises and the price drops. From January to October, the cumulative output of flat glass was 843 million weight cases, an increase of 8.9% over the same period last year. Glass futures prices in mid-November are down more than 40 per cent from their August peak. However, the price of soda ash, the main raw material, also fell at the same time, and the price of soda ash futures fell nearly 30% from the October high, bringing some support to the profit space of glass enterprises. At the same time, there are signs of recovery in the downstream industry, and it is expected that the recovery in the future will lead to a rebound in the glass market.

The three strategic layouts promote the long-term improvement of the company's performance. The company focuses on the main float glass and puts forward three major strategies to comprehensively deepen the layout of the industry. In terms of "natural growth", the company focuses on improving product quality and structure, while optimizing production costs and enhancing core business competitiveness. In terms of "merger and reorganization", the company explored high-quality projects according to its own strategy, focused on promoting Fujian Longtai M & A project in the first half of the year and began to put into production in May. The project is the introduction of China Building Materials Kaisheng Group's advanced development concept and technology of new energy materials, equipment advantages of high-end industrial glass substrate and automotive glass production base, the company has achieved diversified development and successfully expanded to the South China market. In terms of "going out", the company is actively expanding overseas markets, in which the Nigerian project made a profit in the first half of the year, the equipment order for the pharmaceutical glass production line of Olivito of Italy increased steadily, and the Kazakh project is expected to be ignited and put into production this year.

Actively expand the fields of new glass, new materials and new energy. The project of Suqian New Energy Materials Industrial Park officially started on June 28, marking the company's further expansion of its layout in the field of automotive glass and photovoltaic glass. Under the background of carbon peak and carbon neutralization, the current photovoltaic glass energy production materials will not be able to meet the needs of the rapid development of photovoltaic industry in the future. According to the new version of the "measures for the implementation of capacity replacement in the cement Glass Industry", the photovoltaic Calendering glass project does not have to develop a capacity replacement plan. The company will accelerate the transformation and expansion of energy conservation and new energy products, which will improve the company's medium-and long-term development momentum.

Investment advice: through transformation and market development, the company is expected to further increase production capacity and profit margins, medium-and long-term optimistic about the development of the company, recommended to buy.