成本下降，盈利修复

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 8.06 [2][4] Core Views - The company's profitability improved significantly in H2 2023, driven by policy support for property delivery and cost reductions [6] - Revenue grew 4.1% YoY to HKD 26.8 billion in 2023, with net profit increasing 4.6% YoY to HKD 5.37 billion [6] - H2 2023 revenue rose 17.2% YoY to HKD 14.18 billion, with net profit surging 76.6% YoY to HKD 3.22 billion [6] - The company declared a dividend of 63 HK cents per share, representing a payout ratio of 49% [6] Financial Performance - Float glass revenue in H2 2023 reached HKD 9.45 billion, up 17.8% QoQ and 28.4% YoY [6] - Automotive glass revenue declined 1.6% YoY to HKD 5.98 billion in 2023, with gross margin dropping 2.4ppt to 47.9% [6] - Building glass revenue grew 8.9% YoY to HKD 3.35 billion in 2023, though gross margin fell 5.8ppt to 33.4% [6] - The company reduced sales and administrative expenses by HKD 50 million and HKD 13 million respectively in 2023 [6] Industry Outlook - Short-term demand remains resilient due to property completion needs, while low raw material costs support profitability [6] - The company is expanding overseas capacity in Malaysia and Indonesia, while acquiring domestic competitors to strengthen its market position [6] - Revenue is forecast to decline 0.2% in 2024 to HKD 26.75 billion, with net profit expected to grow 8.9% to HKD 5.84 billion [6] Valuation - The stock trades at 5.7x 2024E P/E and 0.86x P/B, with a potential dividend yield of 8.5% [6] - EPS is projected to be HKD 1.41 in 2024, up from HKD 1.29 in 2023 [5][8]