CICC Securities: Raises Fuyao Glass Industry Group (03606) target price to 82 Hong Kong dollars, maintains outperform rating.

CITIC Lyon released a research report stating that the target price of Fuyao Glass Industry Group (03606) has been raised by 6.5% to 82 Hong Kong dollars from 77 Hong Kong dollars, and the target price of Fuyao Glass Industry Group (600660.SH) has been raised by 5.6% to 75 Chinese yuan from 71 Chinese yuan, with the investment rating maintained as "outperform the market". The report pointed out that Fuyao Glass Industry Group is expected to achieve a 19% increase in revenue and a 14% increase in profit in the third quarter of 2025. Despite the decrease in ocean freight and the increase in capacity utilization, the gross profit margin decreased by 0.6 percentage points quarter-on-quarter due to increased discounts on original equipment manufacturing (OEM) and seasonal fluctuations in the profit margin of the US business. Fuyao Glass Industry Group is expected to achieve a target of 6-7% increase in average selling price in 2025. The report predicts that as the penetration rate of new energy vehicles continues to increase in the global market, high value-added products will continue to contribute a greater proportion of revenue. CITIC Lyon expects that Fuyao Glass Industry Group's enhanced bargaining power in OEM and efficient management will enable it to control expenses more effectively. Therefore, the profit forecast for Fuyao Glass Industry Group for 2025/26/27 has been raised by 6.5%/6.5%/6.4%, respectively.