Ge Long Hui·2025-08-05 02:39Core Viewpoint - Goldman Sachs reports that Xinyi Solar and Flat Glass Group have issued profit warnings that significantly underperform expectations, indicating a worsening outlook for the solar glass industry in the second half of this year and into next year [1] Industry Summary - Since April, the stock prices of solar glass companies have risen, reflecting market optimism regarding supply contraction and price increases due to anti-involution policies. However, Goldman Sachs believes that the industry's profit pressure will intensify [1] - The firm has revised its average selling price forecast for the second half of this year to next year down by 9% to 20%, estimating prices to be between 10 to 11 yuan per square meter, due to deteriorating supply and demand and ongoing deflation in raw material prices [1] - It is anticipated that the demand for glass will decline more sharply in the fourth quarter [1] Company-Specific Summary - Based on predictions of reduced effective capacity, declining prices, and rising costs, Goldman Sachs has lowered its EBITDA forecasts for Flat Glass Group and Xinyi Solar by 58% and 73% respectively for 2025 to 2026, with an average EBITDA forecast reduction of 2% for 2027 to 2030 [1] - The target price for Flat Glass Group's H-shares has been slightly reduced from 6.7 HKD to 6.6 HKD, and the A-shares target price has been lowered from 10.3 yuan to 10.2 yuan. The target price for Xinyi Solar remains at 1.9 HKD, with a "sell" rating maintained for all [1]