Zhi Tong Cai Jing·2025-10-30 09:44Core Viewpoint - UBS reports that Fuyao Glass (06865) exceeded quarterly profit expectations, leading to an increase in the target price to HKD 14.7 [1] Financial Performance - For the first three quarters, Fuyao Glass's net profit decreased by 51% year-on-year to RMB 638 million [1] - In the third quarter, net profit increased 1.43 times quarter-on-quarter to RMB 376 million, surpassing market expectations [1] Factors Influencing Performance - The strong performance is attributed to inventory reduction leading to increased sales, price hikes since September, decreased soda ash costs, and improved operational efficiency [1] - UBS has raised its earnings per share forecast for the company by 13%, reflecting adjustments in sales volume and profit margin expectations, as well as a recovery in demand and prices since August and effective cost reductions [1] Target Price Adjustment - UBS has revised the target price for Fuyao Glass from HKD 13.4 to HKD 14.7, maintaining a "Buy" rating [1]