Investment Summary
Strong Result Performance in Q3
In the first three quarters of 2024, Fuyao Glass recorded total revenue of RMB28,314 million,
up 18.84% yoy and its net profit attributable to the parent company was RMB5,479 million,
up 32.79% yoy, both reaching record highs. In Q3, the operating revenue was RMB9.97
billion (RMB, the same below), up 13.4% yoy; the net profit attributable to the parent
company was RMB1.98 billion, up 53.5% yoy.
The Chinese automobile market sold a total of 21.571 million vehicles in the first three
quarters of 2024, up 2.4% yoy. The sales volume of new light vehicles in the US increased
slightly by 0.7% yoy. In the first three quarters, Fuyao Glass’s revenue growth far exceeded
the industry average, demonstrating that as a leading company, Fuyao Glass has seen
continuous enhancement of its overall competitiveness and siphon effect and further
expansion of its market share.
Profitability Improvement
The net profit growth significantly outpaced revenue growth, benefiting from a rapid
increase in profitability, and driven primarily by the following factors:
1) The product mix continues to be optimized and upgraded, raising the proportion of highvalue-added products. In the first three quarters, the proportion of the Company’s highvalue-added products reached 58.18%, up 5.25 ppts yoy, with an increase of 8.84% in the
ASP.
2) The shipping cost has decreased, and the costs of raw materials such as soda ash and
natural gas have experienced a further decline. The Company’s gross profit margin for the
first three quarters reached 37.82%, up by 2.88 ppts yoy. The gross profit margin for Q3
stood at 38.78%, up 2.47 ppts yoy and 1.05 ppts qoq, respectively.
3) The scale effect has amplified the operating leverage and increased capacity utilization,
while advancing the process of automation and informatization, thereby improving
operational efficiency and enhancing factory profitability. For example, the net profit margin
of the US factory in H1 increased by 4.05 ppts yoy. In the first three quarters, the Company’s
sales expense ratio was 4.30%, down 0.27 ppts yoy; the administration expense ratio was
7.36%, down 0.06 ppts yoy.
However, the expenses were partially offset by the following factors:
1) The financial expense ratio was -1.59%, up 0.77 ppts yoy, mainly due to changes in
exchange gains and losses. This period saw an exchange loss of RMB138 million, compared
to an exchange gain of RMB335 million in the same period last year, affecting pre-tax profit
by RMB473 million.
2) Due to the termination of the transfer of the remaining 24% equity of Beijing Futong, the
investment income decreased by RMB212 million.
As of the end of Q3, the Company’s financial position has been good, with cash in hand and
bank deposits of RMB19.76 billion, in a net cash position.
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Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.
