Glonghui, March 1 | Lyon published a research report showing that Xinyi Glass's core profit for the 2023 fiscal year increased by 10%, while the gross margin of float glass in the second half of the year increased 9 percentage points to 30.6% compared to the first half of the year due to improved demand and average sales prices and lower costs. The bank believes that as raw material costs fall, the Group's profit margin will remain healthy for most of this year. However, the bank estimates that under pessimistic circumstances, the gross margin for float glass in 2026 is only a single digit. Overall, as the lowest-cost producer, the bank believes the group is more resilient than market expectations, and its valuation reflects much pessimism. The bank believes that the combined value of the automotive and architectural glass business accounts for about 65% to 100% of the current market value. Due to the risk of oversupply, the bank lowered its target price from HK$12 to HK$8.8, but maintained a “outperforming the market” rating.