Goldman Sachs: Maintains a "buy" rating on Fuyao Glass H shares, with a 12-month target price of HKD 73.

Goldman Sachs released a research report stating that Fuyao Glass's first quarter revenue increased by 5% year-on-year, mainly due to a 5.2% annual decline in global automotive industry production. However, Fuyao's shipment volume only decreased by 3.7%, indicating a continued increase in market share. Management expects limited overall impact of cost inflation under the current geopolitical tensions, as the outlook for the entire year shows a decrease in soda ash prices and freight rates. The company expects stable capitalization of construction in 2026. Goldman Sachs maintains a "buy" rating on Fuyao Glass H shares, with a target price of HK$73 based on a forecasted 2026 P/E ratio of 16.7 times, and maintains a target price of RMB 73 on A shares based on a forecasted 2026 P/E ratio of 18.5 times. The bank has adjusted earnings forecasts for 2026 to 2028 by lowering by 1% to raising by 2%, reflecting slower growth in shipment volume and increased average selling prices.