The Zhitong Finance App learned that CITIC Lyon released a research report stating that it will lower the target price of Fuyao Glass (03606) H shares by 9.5% from HK$74 to HK$67, while also lowering the target price for A-shares to maintain the “outperform the market” rating. The bank expects that weak passenger car sales and exchange rate fluctuations will be the main drag on Fuyao Glass's profit in 2026. Despite improved freight rates and insurance claims settlement, profit margins are expected to increase sequentially in the fourth quarter.

The company's management expects domestic passenger car sales to show a moderate recovery trend in 2027. Combined with this expectation and the continued increase in EU market share as overseas peers gradually withdraw from the market, the bank expects Fuyao Glass to regain its growth momentum. Due to poor performance in the third quarter, the bank lowered its profit forecast for 2026 to 2028 to RMB 8.651 billion to RMB 12.262 billion.

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