[ET Net News Agency, 17 March 2020] CMB International Securities lowered its target
price for Xinyi Solar (XYS)(00968) to HK$6.31 from HK$6.62 and maintained its "buy"
rating.
The research house said XYS' FY2019 earnings of HK$2,416mn was in line with its
estimates. Management revealed that PV (photovoltaic) glass pricing faced no pressures
yet, as industry has average inventory at only 20 days, still in a normal range.
To factor in potential demand shock due to COVID-19, CMB trimmed its FY2020 solar glass
ASP/sales volume by 5.4%/3.6%. Though it cut FY2020 earnings by 12.4% to HK$2,992mn, CMB
believes XYS' earnings growth outlook remains intact. (KL)