Gelonghui, October 18 | Bank of China International published a research report showing that Fuyao Glass's total revenue for the third quarter increased 13.4% year-on-year, slightly lower than expected. Mainly due to weak demand in the US and European markets, overseas revenue expectations were slightly lower, but the average price increase for automotive glass remained at a high level of 8 to 9% in the third quarter. Net profit for the third quarter increased by 53.5% year-on-year to 2 billion yuan, mainly due to continued increase in gross margin, which beat expectations. Bank of China International said that although freight and energy costs increased quarterly, Fuyao Glass's gross margin performance in the third quarter exceeded expectations, increasing by more than 1 percentage point to 38.8% from quarter to quarter. Overseas bases showed mixed performance during the period. Its German SAM benefited from customer compensation of 22.5 million euros and achieved a profit of 12 million euros, while the profit and operating margin of the US base were lower than expected. The bank lowered the Group's revenue forecast for 2024-25 by 2% to 3% to 39 billion and 45 billion yuan, respectively, and slightly reduced its net profit forecast by 1 to 2% to 7.2 billion yuan and 7.9 billion yuan, respectively. Despite the release of new production capacity in the next two years or diluting the short-term profit margin of the new plant, the Group continues to upgrade its products under the trend of electrification and continues to strengthen its leadership position in the global automotive glass market to maintain a “buy” rating. The target price for H shares was slightly lowered from HK$68 to HK$65.