FYG,FUYAO GLASS(SH:600660) Changjiang Securities·2024-05-14 02:02Investment Rating - The investment rating for Fuyao Glass is "Buy" and is maintained [5]. Core Views - Fuyao Glass has achieved significant revenue growth, with a year-on-year increase of 25.3% in Q1 2024, reaching 8.84 billion yuan, and a net profit growth of 51.8%, amounting to 1.39 billion yuan [4][5]. - The company continues to enhance its penetration of high-value-added products and increase its global market share, leading to revenue growth that outpaces the domestic downstream market [4][5]. - The decline in raw material costs, such as soda ash and natural gas, has positively impacted the company's gross margin, which improved by 3.6 percentage points year-on-year to 36.8% in Q1 [4][5]. - Fuyao Glass is positioned as a leading player in the global automotive glass market, with a widening competitive moat and significant long-term investment value [4][5]. Summary by Relevant Sections Financial Performance - In Q1 2024, Fuyao Glass reported a total revenue of 8.84 billion yuan, a 25.3% increase year-on-year, and a net profit of 1.39 billion yuan, reflecting a 51.8% growth [4]. - The gross margin for Q1 was 36.8%, up 3.6 percentage points from the previous year, driven by lower costs of key raw materials [4][5]. - The total profit for Q1 reached 1.69 billion yuan, a 52.2% increase year-on-year, despite some impacts from foreign exchange losses and a terminated equity transfer agreement [4][5]. Market Outlook - The global automotive market is expected to expand rapidly, benefiting Fuyao Glass as it capitalizes on the increasing penetration of advanced glass products [5]. - The company’s high-value-added products, including smart panoramic roofs and adjustable glass, have seen a revenue share increase of 9.54 percentage points year-on-year [5]. - Fuyao Glass is anticipated to maintain a strong growth trajectory, with projected net profits of 6.46 billion, 7.24 billion, and 8.56 billion yuan for 2024, 2025, and 2026, respectively [5].