Goldman Sachs: Cuts Fuyao Glass Industry Group (03606) target price to HK$59, maintains "Neutral" rating

Goldman Sachs issued a research report stating that Fuyao Glass Industry Group's (03606) Q3 2026 results were below expectations, and cut its target price from HK$64 to HK$59, maintaining a "Neutral" rating. The bank lowered the company's earnings per share forecasts for 2026 to 2028 by 5% to 10%, mainly reflecting lower revenue due to declining China auto production and exchange losses from RMB appreciation. Looking ahead to Q4, the bank expects Fuyao Glass Industry Group's revenue to grow 13% year-on-year and 16% quarter-on-quarter, driven by improved production growth on a low base last year and higher average selling prices. For full-year 2026, the bank expects the company's revenue to be RMB48.2 billion, up 5% year-on-year, reflecting an 8.3% year-on-year increase in average selling price and a 2.9% decline in sales volume; net profit is expected to fall 6%, mainly dragged down by exchange losses caused by RMB appreciation.