Zhi Tong Cai Jing·2025-08-29 08:27Core Viewpoint - Credit Lyonnais has downgraded the net profit forecasts for Fuyao Glass (601865) for the years 2025 to 2027 by 55.3%, 39.8%, and 22.6% respectively, reflecting a slowdown in capacity expansion and a decrease in solar glass prices, while raising the target price from HKD 10 to HKD 12 and maintaining an outperform rating [1] Company Performance - Fuyao Glass's performance in the first half of the year met earlier profit forecasts, with estimated unit net profit around RMB 0.5 per square meter [1] Industry Trends - Many companies in the industry are beginning to conduct cold repairs and maintenance on their furnaces, delaying capacity expansion, which has contributed to a reduction in industry inventory to approximately 24 days by the end of August [1] - The price of solar glass is expected to increase by RMB 1.5 to 2 per square meter [1]