Ge Long Hui·2025-10-30 02:44Core Viewpoint - Bank of America Securities reports that Fuyao Glass achieved a net profit of 376 million yuan in Q3, exceeding expectations, primarily due to a gross margin of 16.8%, significantly higher than the forecast of 8-9% [1] Financial Performance - Fuyao Glass's gross margin of 16.8% is seen as a new long-term bottom for the company, compared to the previous two quarters' margins of 16-17% [1] - The company has a notable profit advantage over smaller or domestically focused competitors [1] Market Concerns - There are concerns regarding weak solar demand and ongoing oversupply in the market [1] Stock Performance and Valuation - Following the earnings announcement, Fuyao Glass's stock price increased by 12%, leading to a reasonable valuation [1] - The earnings forecast for Fuyao Glass for the fiscal year 2026 has been raised by 55%, with the target price adjusted from 7 HKD to 12.8 HKD, based on a projected price-to-earnings ratio of 15.5 times for fiscal year 2026, which aligns with the five-year average [1] - The rating has been upgraded from "underperform" to "neutral" [1]