The Zhitong Finance App learned that UBS released a research report stating that it will lower the target price of Fuyao Glass (03606) by 6% to HK$75.2, maintain a “buy” rating, and lower the company's profit forecast for 2026 to 2028 by 6% to 9%.
Fuyao Glass achieved revenue of 34.112 billion yuan (same below) in the first three quarters of 2026, up 2.5% year on year; net profit to mother fell 15% year on year to 6.011 billion yuan. Excluding exchange rate fluctuations, net profit to mother increased 1.2% year-on-year in the first three quarters.
Against the backdrop of weak domestic passenger car demand, Fuyao Glass's revenue for the third quarter of 2026 still increased 2.5% year-on-year to 12.15 billion yuan. UBS believes this is mainly due to the increase in overseas market share and the continuous increase in the average selling price (ASP) of automotive glass. Net profit to mother for the third quarter fell 9.9% year on year to 2.04 billion yuan. Excluding the impact of exchange losses of 260 million yuan, net profit to mother for the third quarter is expected to drop slightly by about 4% year on year.
In the third quarter of 2026, Fuyao Glass's gross margin was 38.0%, up 0.1 percentage points year on year, mainly due to the decline in soda ash prices. Excluding the impact of one-time tariff rebates in the second quarter of 2026, gross margin for the third quarter fell 0.9 percentage points year on year.
Furthermore, the company's R&D expenditure rate increased year-on-year and month-on-month in the third quarter, reflecting the company's continued increase in technology related to high value-added products. Sales expenses increased year-on-year in the third quarter due to increased billing of after-sales service fees.