G Sachs Downgrades FUYAO GLASS to Neutral, Cuts TP to HKD64 on Weaker-than-Expected 2Q Results
I'm LongbridgeAI, I can summarize articles.Goldman Sachs downgraded Fuyao Glass from Buy to Neutral, cutting target prices to RMB65 and HKD65. The downgrade reflects weaker-than-expected Q2 results due to slowing overseas growth and foreign exchange losses. While 2026 EPS forecasts were reduced by 6%, future years' estimates were raised on margin improvements. Goldman expects revenue and profit growth to slow amid stagnant global auto production.
G Sachs issued a report downgrading FUYAO GLASS (03606.HK) +0.200 (+0.360%) Short selling $30.09M; Ratio 34.671% from Buy to Neutral. The broker also lowered the A-share and H-share target prices of FUYAO GLASS (600660.SH) +1.140 (+2.018%) to RMB65 and HKD64 respectively.
The broker said the company's 2Q revenue and net profit missed expectations due to slowing overseas growth and foreign exchange losses. It cut its 2026 EPS forecast by 6% to reflect lower revenue and FX headwinds, but raised its EPS forecasts for the following two years by 3% and 6% respectively, supported by better margins driven by continued adoption of high value-added products and strong cost controls. Although the broker acknowledged the company's margin strength and continued market share gains, it expects future revenue and net profit growth to slow amid a stagnant global auto production outlook and already high market penetration.