Ge Long Hui·2026-01-16 08:01Core Viewpoint - Citigroup has downgraded its revenue forecasts for Xinyi Glass for the years 2025 to 2027 by 5%, reflecting pressure on average selling prices and profit margins in the float glass segment [1] Revenue and Profit Margin Adjustments - Gross margin forecasts have been reduced by 1.3 to 2.8 percentage points, now expected to range between 28.5% and 30.2% [1] - Net profit forecasts have been cut by 21% to 38%, with expected figures of 2.6 billion, 3.3 billion, and 3.7 billion yuan for the respective years [1] Business Segment Performance - The automotive glass business is expected to see a significant increase in profit contribution and has shown strong gross margin performance [1] Valuation Adjustments - The valuation multiple for Xinyi Glass's core glass business has been increased to a projected price-to-earnings ratio of 10 times for this year [1] - The target price for Xinyi Glass has been raised from 7.55 HKD to 9.01 HKD, while maintaining a "neutral" rating [1] Outlook - The company maintains a cautious outlook on the short to medium-term prospects despite the adjustments in valuation and target price [1]