FYG,FUYAO GLASS(600660) 方正证券·2025-03-17 03:27Investment Rating - The report maintains a "Recommend" rating for Fuyao Glass [1] Core Views - Fuyao Glass is expected to continue its growth trajectory in 2025, driven by increasing domestic demand and export sales, rising average selling prices (ASP), and significant profit potential in the U.S. market [4][5][6] - The company is well-positioned to capitalize on opportunities in both the U.S. and European markets, with a focus on expanding production capacity and enhancing market share [5][6][41] Summary by Sections Historical Performance - Fuyao Glass has shown a performance trend with a 11% decline compared to the benchmark index [2] Revenue and Profit Outlook - Revenue is projected to reach 377.47 billion RMB in 2024, 437.59 billion RMB in 2025, and 500.65 billion RMB in 2026, with net profits expected to be 73.86 billion RMB, 86.29 billion RMB, and 99.56 billion RMB respectively [9][4] - The company’s EPS is forecasted to grow from 2.83 RMB in 2024 to 3.81 RMB in 2026 [9] U.S. Market Opportunities - The U.S. automotive market is projected to have a production of 10.66 million vehicles in 2023, with 5.47 million vehicles relying on imports, creating a significant opportunity for Fuyao Glass [5][13] - Fuyao Glass aims to increase its market share in the U.S. to 40% by 2024, benefiting from the return of manufacturing and tariff policies under the Trump administration [5][20] European Market Dynamics - The European automotive market has faced challenges, but Fuyao Glass is positioned to increase its market share, especially if major competitors like Saint-Gobain exit the market [6][33][41] - The report highlights that Fuyao Glass's market share in Europe has already surpassed 30%, driven by supply chain disruptions and increased demand from European automakers [41][43] Production Capacity and Cost Management - Fuyao Glass has invested significantly in expanding its production capacity, with plans to increase output to 48.8 million units by 2026 [7][9] - The company is expected to benefit from declining raw material costs, particularly in soda ash and natural gas, which will enhance profit margins [6][9]