BOCOM INTL: Raise the target price of FLAT GLASS (06865) to HKD 11.45 Glass prices hit bottom and are rebounding.

BOCOM INTL released a research report stating that recent government meetings have expressed strong support for the photovoltaic supply side, which is expected to see a turning point. Due to weaker-than-expected product price trends, the bank has lowered FLAT GLASS's (06865) profit forecast for 2025-2027, maintaining a valuation benchmark of 1.1 times price-to-book ratio for 2025. Due to the appreciation of the Renminbi, the target price has been slightly raised by 1% to HK$11.45 from HK$11.3, while maintaining a "buy" rating. The report notes that the company has released a performance forecast, expecting a profit of RMB 230 to 280 million in the first half of 2025, with a second quarter profit of RMB 120 to 170 million, representing a 41% increase from the previous quarter. Since June, the photovoltaic glass industry has significantly reduced production, with inventory accumulation slowing down in the past week. The bank expects destocking to begin in August, with glass prices expected to bottom out and rebound thereafter.