FYG,FUYAO GLASS(600660) GF SECURITIES·2024-10-20 05:10Investment Rating - The report assigns a "Buy" rating for both A and H shares of Fuyao Glass, with current prices at 58.60 CNY and 56.60 HKD respectively, and a reasonable value of 68.66 CNY and 65.52 HKD [1][9]. Core Insights - In Q3 2024, Fuyao Glass reported a revenue increase of 13.4% year-on-year, outperforming the domestic automotive sales growth by approximately 17.3 percentage points [2][4]. - The company's gross margin improved for seven consecutive quarters, reaching 38.8% in Q3 2024, benefiting from quality enhancement, operational leverage, and a decline in raw material prices [4][9]. - The company is entering a new phase of global capacity expansion, driven by high-value products such as panoramic glass and HUD glass, which are expected to continue enhancing the average selling price (ASP) [7][9]. Financial Performance Summary - For the first three quarters of 2024, Fuyao Glass achieved a revenue of 283.1 billion CNY, a year-on-year increase of 18.8%, and a net profit attributable to shareholders of 54.8 billion CNY, up 32.8% [2][4]. - The total profit, adjusted for foreign exchange losses, was 68.1 billion CNY, reflecting a 49.4% increase year-on-year [2][4]. - The company forecasts EPS for 2024, 2025, and 2026 to be 2.86 CNY, 3.45 CNY, and 4.09 CNY per share respectively, with a maintained "Buy" rating [9][11].