The Zhitong Finance App learned that Lyon released a research report stating that Fuyao Glass (03606)'s net profit forecast for 2026 to 2028 was lowered by 4% to 9%, and the target price was lowered from HK$74 to HK$67, maintaining a “outperforming the market” rating. The bank expects Fuyao Glass's profit in 2026 to be mainly dragged down by weak passenger car sales and exchange effects, but profit margins will improve month-on-month in the fourth quarter, benefiting from falling freight rates and settlement of insurance claims.

Management expects a moderate recovery in passenger car sales in the mainland in 2027. Coupled with continued increase in market share driven by the gradual withdrawal of European overseas peers, the bank expects the company to regain its growth momentum. The bank pointed out that the company's third-quarter performance was mediocre. The net profit forecast for 2026 to 2028 was lowered, mainly reflecting a moderate recovery after weak passenger car sales in 2026, exchange losses, and an increase in new product development expenses.

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