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2026-10-22 14:02:18 Morgan Stanley published a technical research report stating that the recent pullback in the share price of FUYAO GLASS (03606.HK) has made its near-term valuation more attractive. The broker believes the stock price will rise over the next 15 days, with a probability of about 70% to 80% ("very likely"). The broker noted that although FUYAO GLASS' earnings for 3Q26 came in below market expectations due to higher cost of sales and larger foreign exchange losses, the long-term investment thesis remains broadly unchanged. First, according to company guidance, the contribution from higher value-added products such as dimmable glass, soundproof glass and head-up display (HUD) glass is expected to increase, with average selling price CAGR projected at 6% to 7% over the next decade. Second, benefiting from market share gains, particularly in Europe, sales volume performance is expected to outperform the automotive industry. The broker maintained its Equalweight rating and TP at HKD53.5. The broker said increased rebates and rising energy costs are expected to pressure margins, while newly added production capacity is also facing this year's downturn cycle in the automobile industry. However, the recent share price correction appears excessive. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |