--- title: "\"Large Banks\" Research: XINYI GLASS's automotive glass business supports valuation steadily, raising target price to 9.8 yuan" type: "News" locale: "en" url: "https://longbridge.com/en/news/277574781.md" description: "HSBC Global Research released a report stating that XINYI GLASS's profit in 2025 is expected to be RMB 2.73 billion, a year-on-year decrease of 19%. Although the decline in real estate completion area and float glass prices has affected revenue, the automotive glass business revenue has increased by 8.8% year-on-year, with profitability continuing to expand. It is expected that profits will stabilize in 2026, with the target price raised from HKD 7.7 to HKD 9.8, maintaining a \"Hold\" rating. The profit forecast for 2026 has been revised down by 4%, but the profit forecast for 2027 remains unchanged, with an expected profit growth of 11% in 2028" datetime: "2026-03-03T06:42:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277574781.md) - [en](https://longbridge.com/en/news/277574781.md) - [zh-HK](https://longbridge.com/zh-HK/news/277574781.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277574781.md) | [繁體中文](https://longbridge.com/zh-HK/news/277574781.md) # "Large Banks" Research: XINYI GLASS's automotive glass business supports valuation steadily, raising target price to 9.8 yuan HSBC Global Research published a report indicating that XINYI GLASS (00868.HK) announced its performance for the fiscal year 2025, with a profit of RMB 2.73 billion, a year-on-year decrease of 19%, which was in line with expectations. The main reasons were the continuous decline in the area of completed real estate projects in China, a decrease in float glass prices leading to reduced revenue, and decreased profits from joint ventures such as XINYI SOLAR (00968.HK). However, the new production capacity has led to sales growth, with the automotive glass business maintaining strong performance, achieving a year-on-year revenue increase of 8.8%. Due to cost reductions in energy and soda ash prices, the profitability of this business continues to expand. The research expects that XINYI GLASS's profits will stabilize in 2026, with float glass prices expected to remain low in the short term, and limited downside potential supported by costs. Although there is an expectation of "supply-side optimization" in the market under the trend of "anti-involution," weak demand continues to limit price rebounds. In terms of costs, the firm expects soda ash prices to remain low due to ample supply but weak demand. Natural gas prices in China are expected to remain stable, but ongoing conflicts in the Middle East may pose upward risks and lead to more reconstruction needs for the group's production line investments in Saudi Arabia. Overall, HSBC Global Research anticipates weak prices but lower costs. Given XINYI GLASS's cost advantages and product differentiation, the research expects the group's performance to outperform its peers, while the continuously growing automotive glass business should help limit stock price declines. The target price has been raised from HKD 7.7 to HKD 9.8; considering the structurally robust profitability of the group, a "Hold" rating is maintained. HSBC Global Research has also lowered its profit forecast for XINYI GLASS in 2026 by 4%, but maintained its profit forecast for 2027. At the same time, it has introduced a profit forecast for 2028, expecting profits to grow by 11% year-on-year driven by the automotive glass business ### Related Stocks - [Guotai CSI 800 Automobile and Parts ETF (516110.CN)](https://longbridge.com/en/quote/516110.CN.md) - [XINYI GLASS (00868.HK)](https://longbridge.com/en/quote/00868.HK.md) - [E Fund CSI Auto Components Thematic ETF (159565.CN)](https://longbridge.com/en/quote/159565.CN.md) - [Ping An CSI Auto Components Thematic ETF (159306.CN)](https://longbridge.com/en/quote/159306.CN.md) - [ChinaAMC CSI Auto Components Thematic ETF (562700.CN)](https://longbridge.com/en/quote/562700.CN.md) - [HFT CSI Auto Components Thematic ETF (562260.CN)](https://longbridge.com/en/quote/562260.CN.md) ## Related News & Research - [Xinyi Glass Declares Final 2025 Dividend With Optional Scrip Shares](https://longbridge.com/en/news/277249561.md) - [Xinyi Glass posts FY revenue RMB 20,829 million](https://longbridge.com/en/news/277219530.md) - [Huatai Securities Sticks to Their Buy Rating for Xinyi Glass Holdings (XYIGF)](https://longbridge.com/en/news/277608888.md) - [ZO Future Pivots From Birmingham Blunder To NEV Longshot](https://longbridge.com/en/news/277779734.md) - [07:58 ETAutomotive Tire Market to Reach US$ 260.7 billion by 2033 Expands Amid Vehicle Growth and EV Innovation](https://longbridge.com/en/news/277782486.md)