FAST NEWS: Xinyi Glass profit falls on lower product demand
The latest: Glass equipment maker Xinyi Glass Holdings Ltd. (0868.HK) said Friday it expects a half-year net profit of 1.818 billion yuan ($254 million) to 2.148 billion yuan, down 35% to 45% year-on-year.
Looking up: As the company’s net profit was only 1.82 billion yuan in the second half of last year, it means there’s a chance its profit level will improve in the first half of this year.
Take Note: The company’s earnings performance was weakened by the low average selling price of float glass products in the construction sector in China due to suppressed demand and the overall increase in the average cost of energy and raw materials on a year-over-year basis.
Digging Deeper: Founded in 1988 and listed on the Hong Kong Stock Exchange in 2005, Xinyi Glass is a leading global integrated glass manufacturer dedicated to the production of high-quality float glass, automotive glass and energy-saving architectural glass, with a sales network in more than 140 countries and regions around the world. However, since 2022, its revenue and net profit have declined significantly due to the decline in demand for automotive and architectural glass products, reversing years of growth and showing no signs of improvement in the first half of this year.
Market Reaction: Xinyi Glass shares fell – and then rose – on Monday morning, closing up 0.9% at HK$11.7 by the midday break. The stock now trades near the lower end of its 52-week range.
Translation by Jony Ho
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