The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintained Fuyao Glass (03606)'s “buy” rating, raised its 2024-2026 profit forecast by 1% to 9%, and believes that strong profitability will be maintained. The target price was raised from HK$47 to HK$51. The company's first-quarter results beat market expectations and only met this forecast.

According to the report, Fuyao Glass's revenue in the first quarter was 8.8 billion yuan, up 25% year on year and down 5% from quarter to quarter; net profit was 1.4 billion yuan, up 52% year on year and down 8% from quarter to quarter. The gross profit margin was 36.8%, up 0.3 percentage points from quarter to quarter, the best in the past 12 quarters, mainly benefiting from economies of scale, falling natural gas costs and other cost optimization measures. Although the overall price and profit margin of the automotive supply chain are under pressure, the company's gross margin is still rising, reflecting its risk-return attraction. The profit margin from operating its US factory is 14.6%, which also reflects the benefits of overseas expansion.