Xin Lang Cai Jing·2025-08-05 02:54Core 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 [1] - However, Goldman Sachs believes that the downward pressure on industry profits will intensify, leading to a forecasted average price decline of 9% to 20% for the second half of this year, bringing prices to between 10 to 11 yuan per square meter [1] - The firm anticipates a deeper correction in glass demand in the fourth quarter, driven by deteriorating supply and demand dynamics and ongoing deflation in raw material prices [1] Company-Specific Summary - EBITDA forecasts for Flat Glass Group and Xinyi Solar have been reduced by 58% and 73% respectively for the years 2025 to 2026, with average EBITDA forecasts for 2027 to 2030 also lowered by 2% [1] - Target prices for Flat Glass Group's H-shares have been slightly decreased from 6.7 HKD to 6.6 HKD, and A-shares from 10.3 yuan to 10.2 yuan, while the target price for Xinyi Solar remains at 1.9 HKD, with a "sell" rating maintained for all [1]