BofAS Cuts FUYAO GLASS TP to HKD71; 2Q26 Revenue Misses Forecasts but Gross Margin Beats
I'm LongbridgeAI, I can summarize articles.BofAS cut FUYAO GLASS's target price to HKD71 and lowered revenue forecasts for 2026-2028 by 10% due to weaker sales volume assumptions, while earnings estimates were reduced by 4%. Despite a Q2 2026 revenue miss of 5%, gross margins beat expectations. Operating profit exceeded estimates, but net profit fell 19% YoY due to foreign exchange losses. The broker reiterated its Buy rating.
BofAS published a report stating that FUYAO GLASS (03606.HK) -0.450 (-0.781%) Short selling $9.72M; Ratio 7.136% 's revenue for 2Q26 was RMB11.6 billion, flat YoY and up 11% QoQ, 5% below the broker's expectations. Gross margin rose 1.7 ppts YoY to 40.2%, beating forecasts, while adjusted gross margin increased 0.4 ppts to 38.9%. Operating profit grew 5% YoY to RMB2.8 billion, 5% above the broker's estimates. Net profit fell 19% YoY, 4% below the broker's expectations, mainly due to RMB360 million in foreign exchange losses.
The broker lowered its revenue forecasts for FUYAO GLASS from 2026 to 2028 by an average of 10% to reflect weaker sales volume assumptions, while earnings forecasts were cut by an average of 4% due to resilient margin performance. The TP was reduced from HKD75 to HKD71. The Buy rating was reiterated. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-21 12:25.)