[ET Net News Agency, 27 September 2019] HSBC Global Research lifted its target price
for Fuyao Glass Industry Group (03606) to HK$31.6 from HK$30 and maintained its "buy"
rating.
The research house said this year Fuyao's US factory is very busy and all space in the
plant is being used. More robotic arms have been installed in the plant to improve overall
efficiency.
In the medium run, HSBC believes the US margin could continue to increase if Fuyao
offers more high-value-added glass products such as HUD (head-up display) and capsulated
glass module. By leveraging investment in R&D and technological advancement, HSBC does not
believe it is a difficult task for Fuyao to further gain shares from competitors in the US
auto glass market. (KL)