First Read: Fuyao Glass - A "Q226 earnings preview: GPM likely to remain..."

研报英文原文证据摘录

First Read: Fuyao Glass - A "Q226 earnings preview: GPM likely to remain..."

Global Research

2 July 2026abc

First Read

EquitiesFuyao Glass - A

Q226 earnings preview: GPM likely to remain China

resilient, continued FX headwind Auto Parts

12-month rating Buy

12m price target Rmb85.00

Q226 results preview

Prior : Rmb93.00

While China's passenger vehicle (PV) sales continued to contract YoY in Q226, Fuyao's

existing domestic capacity utilisation was largely flat YoY and up 3-4ppts QoQ in the Price (02 Jul 2026) Rmb49.81

quarter, benefitting from the execution of new orders. We expect its auto glass ASP in RIC: 600660.SS BBG: 600660 CH

Q226 to improve YoY and QoQ, as the optimising car model mix and the penetration of

Trading data and key metrics

high-value-added products still bode well for ASPs. Although new capacity ramp-up has

brought about certain increase in depreciation & amortization and labour costs, we 52-wk range Rmb74.20-48.01

expect its GPM to be stable YoY in Q226, off a high base, given the steady natural gas Market cap. Rmb130b/US$19.2b

procurement price, limited impacts from ocean shipping rates volatility, and a higher Shares o/s 2,610m (ORDA)

GPM for high-value-added products. We expect a resilient operating profit in Q226, Free float 63%

given its active efforts to improve operational quality and efficiency. Amid continued Avg. daily volume ('000) 13,597

RMB appreciation in Q226, we expect Fuyao to book a FX loss in the quarter, weighing Avg. daily value (m) Rmb752.4

on its reported earnings. Common s/h equity (12/26E) Rmb42.5b

P/BV (12/26E) 3.1x

H226 outlook: continued ASP uplift, eyes on domestic order recovery Net debt to EBITDA (12/26E) NM

We expect Fuyao's operations to improve sequentially in H226. Demand wise, it

EPS (UBS, diluted) (Rmb)