Zhitong Financial APP learned that Tianfeng Securities released a research report that maintainedChina Glass (03300.HK) $"Buy" rating, rising costs support higher float average prices, while raising float glass production and sales expectations, slightly rising 2022x23 revenue forecast to 54 / 6.4 billion yuan (original 50 / 5.7 billion yuan) Based on the more cautious supply and demand of float glass and the forecast of unit profit, the 23-year net profit is forecast to be 6.5 / 850 million yuan (formerly 7.8 / 940 million yuan) in 2022. The new 24-year income and net profit are forecast to be 75 / 1.06 billion yuan. 2022-24 income and return net profit are 6% 20% 17% and-11% 31% 25% respectively compared with the same period last year. The corresponding EPS for 22-24 years (using the latest equity) is 0.36, 0.47 and 0.58 yuan respectively, and the target price is reduced to HK $4.38.

According to the report, the company's annual income in 2021 was 5.07 billion yuan, an increase of 60 percent over the same period last year, and its net profit was 740 million yuan, which was basically in line with the previous performance forecast. The volume and price of glass products rose in 2021, and the sales revenue of the products was 4.85 billion yuan, an increase of 60% over the same period last year. The production costs of the company's 2021 fiscal year and H2 glass products were 80 yuan and 85 yuan respectively. The overall production cost of 21FY for the whole year continued to rise, mainly due to fluctuations in soda ash, crude oil chain and coal chain fuel prices, and some hedging price increases improved profit margins. The bank calculates the net profit of glass products 21FY and 21h2 single box 20, 22 yuan, 21FYyoy+22 yuan, 21h2hoh+4 yuan.

The bank said that the rapid increase in production and sales of the company's 21h2 glass products proves that the company's float production capacity can be improved. The upward elasticity of the company's scarce floating capacity comes from: 1) continued epitaxial acquisition, 21fy completed the Fujian Longtai acquisition holding (with 1 float normal in production and 1 under construction) and completed the wholly-owned acquisition of Happy Development (with a floating normal under construction). 2) the asset integration of float glass owned by major shareholders may also be promoted step by step. Under the background of the attribution of float glass production capacity resources, float glass production capacity elasticity may bring scarce growth elasticity and sustainability for the company. On the other hand, as the company gradually promotes the upgrading of kilns and makes full use of major shareholder resources / platform advantages to give full play to procurement advantages, the company's production costs may have more room for optimization; continuous repair of the balance sheet is also expected to continue to reduce the rate of financial expenses. The bank believes that the company has better capacity expansion flexibility and cost reduction space, pay attention to the progress of real estate demand repair, growth sustainability and scarcity should be paid attention to.