Morgan Stanley lifted its target price for Fuyao Glass Industry (03606) to HK$46 from HK$22 and maintained its "equal-weight" rating.
The research house said the market has been optimistic about Fuyao's potential inroads into the solar glass in light of strong market demand and rich margin amid tight supply, which has been further helped by its success in auto glass.
Fuyao said it was seriously considering solar glass opportunities with the proceeds from its proposed placement, but any investment would take at least two years to translate into meaningful output, implying industry/execution uncertainty.
Morgan raised its 2021-22 earnings forecasts by 15-25% to reflect a stronger operational recovery and likely accelerating sales contribution from high-value products.
15/01/2021 17:24
{I-bank focus}Morgan lifts Fuyao Glass (03606) to HK$46
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