Flat Glass Group Co Ltd | Asia Pacific Preliminary 2Q26 loss; in-line

Research evidence excerpt

Flat Glass Group Co Ltd | Asia Pacific Preliminary 2Q26 loss; in-line

Update

July 14, 2026 09:39 AM GMT

Morgan Stanley Asia Limited+MFlat Glass Group Co Ltd | Asia Pacific Hannah Yang, CFA

Equity Analyst

Preliminary 2Q26 loss; in-line Hannah.Yang1@morganstanley.comRachel L Zhang +852 2239-7079

Rachel.Zhang@morganstanley.com +852 2239-1520

Reaction to earnings Chris Jiang

Unchanged Modest shortfall Modest revision lower Chris.Jiang@morganstanley.com +852 3963-1593

Impact to our thesis Financial results versus consensus Direction of next 12-month Cynthia Tang

consensus EPS

Research Associate

Source: Company data, Morgan Stanley Research Cynthia.Tang@morganstanley.com +852 3963-4360

Flat Glass expects 1H26 to realize a loss of Rmb300-400mn, in-line with market

expectations. The implied loss in 2Q26 is Rmb338-438mn vs. a profit of Rmb155mn

in 2Q25 and Rmb38mn in 1Q26. The weak earnings reflect: 1) the quickly decline in

solar glass prices in 2Q26 due to mismatched industry fundamentals. Based on SCI

data, the average solar glass price declined 28% YoY in 1H26; and 2) impairment Flat Glass Group Co Ltd (6865.HK, 6865 HK)

booked on suspended solar glass production lines and inventories. Greater China Materials | China

Stock Rating Overweight

Fundamentals gradually improving. After a few loss-making months on cash, we Industry View Attractive

Price target HK$11.50

have started to see solar glass production lines carrying out maintenance recently. Up/downside to price target (%) 80

This, together with the capacity impacted by the line blockage, has lowered the Shr price, close (Jul 14, 2026) HK$6.39

52-Week Range HK$13.86-5.81

effective operating capacity in domestic market to slightly over 70kt/d. The market Sh out, dil, curr (mn) 442

is now relatively balanced.