Citi: Downgraded the target price of Xinyi Glass (00868.HK) to HKD 10.3. Mid-term performance exceeded expectations, but cost pressures increased in the second half.

According to the Zhitong Finance APP, Citigroup has released a research report stating that Xinyi Glass (00868.HK) achieved higher revenue, gross margin, and net profit in the first half of the year than the market expected. However, the firm anticipates that cost pressures will become more significant in the second half of the year, thus lowering the target price from HKD 11.7 to HKD 10.3, while maintaining a "neutral" rating. The report mentioned that Xinyi Glass's revenue decreased by 3% year-on-year, which was 2% higher than market expectations; the gross margin was 30.1%, down 1.5 percentage points year-on-year, and 1.2 percentage points higher than market predictions; the net profit increased by 17% year-on-year, exceeding market expectations by 18%. In response to a decline in capital expenditure, the firm slightly raised the company's net profit forecast for this year by 1%, but lowered the projections for 2027-28 by 2% to reflect the gross margin pressures starting in the second half of this year.