Morgan Stanley releases reportbaccaratdinnerset, downgraded its investment rating on Xinyi Glass from "keeping pace with the market" to "reducing holdings", with a target price from 9baccaratdinnerset.5 Hong Kong dollars dropped to 7baccaratdinnerset.8 Hong Kong dollars, and the forecast for earnings per share from this year to 2026 has also been lowered by 6% to 17%.
According to the report, Xinyi Glass's share price rebounded 63% from its low on February 9, benefiting from the relaxation of real estate policies, low valuations and relatively high dividends.baccaratdinnersetSentiment has improved, but the stock price is now trading at 10 times forecast P/E, above the average of 9 times since 2010. The stock price is expensive and is also expensive compared to other post-construction materials stocks such as aluminum stocks. The report also pointed out that driven by the improvement in industry profitability since the second quarter of last year, China's glass industry's operating production capacity has recovered to 173,000 tons per day, which can meet the needs of completing 1.5 billion square meters of building floor. However, based on the forecast volume of the national statistical department, the unit area completed this year is only 900 million square meters. The widening gap between supply and demand will continue to put pressure on glass prices and industry profits, especially in the second half of the year, and damage Xinyi Glass's profits.