智通财经网·2025-10-30 05:57Core Viewpoint - Bank of America Securities upgraded the rating of Fuyao Glass (06865) from "Underperform" to "Neutral" due to better-than-expected net profit of 376 million RMB in Q3, benefiting from a gross margin of 16.8%, significantly higher than the forecast of 8-9% [1] Financial Performance - Fuyao Glass's Q3 net profit reached 376 million RMB, surpassing expectations [1] - The gross margin of 16.8% was notably higher than the previously predicted range of 8-9% [1] Earnings Forecast - The earnings forecast for Fuyao Glass for the fiscal year 2026 was raised by 55% [1] - The target price was increased from 7 HKD to 12.8 HKD, based on a projected price-to-earnings ratio of 15.5 times for fiscal year 2026, aligning with the five-year average [1] Competitive Position - Fuyao Glass demonstrates a significant profit advantage compared to smaller or domestically limited competitors [1] - The company’s gross margin of 16-17% over the past two quarters is expected to establish a new long-term bottom for the company [1] Market Concerns - There are ongoing concerns regarding weak solar demand and a persistent oversupply situation in the market [1] - Following the earnings announcement, Fuyao Glass's stock price increased by 12%, leading to a more reasonable valuation [1]