Bank of America Securities: Lowering Fuyao Glass (03606) Target Price to HK$71 to Reiterate “Buy” Rating

The Zhitong Finance App learned that Bank of America Securities released a research report saying that Fuyao Glass (03606)'s revenue for the second quarter of 2026 was 11.6 billion yuan (same below), flat year-on-year and 11% quarter-on-month, 5% lower than the bank's forecast; gross margin rose 1.7 percentage points year-on-year to 40.2%, better than expectations, and adjusted gross margin rose 0.4 percentage points to 38.9%; operating profit increased 5% year-on-year to 2.8 billion yuan, 5% higher than the bank's expectations; net profit fell 19% year-on-year, 4% lower than the bank's expectations, and mainly received 360 million yuan in exchange Losses drag on. Bank of America Securities reaffirmed its “buy” rating and reduced the target price from HK$75 to HK$71. The bank lowered Fuyao Glass's 2026-2028 revenue forecast by an average of 10% to reflect weak sales assumptions; at the same time, due to steady profit margin performance, it lowered its profit forecast by an average of 4%.