FLAT GLASS (6865 HK) Cost Advantages Will Be Prominent as the Price of Photovoltaic Glass Falls May 24, 2021 113

PSR Recommendation: BUY Status: Maintained
Target Price: HKDHKD33

Investment Summary
Results in 21Q1 Soar Again, up 289%
Benefiting from the continuation of the industry’s high boom and the launch of new
production lines, Flat Glass recorded operating revenue of RMB2,057 million in the first
quarter of 2021, up by 70.95%yoy. The net profit attributable to the parent company was
RMB838 million, up by 289.38% yoy and up by 2.6% qoq, hitting new record high again.
Profitability Indices Hit New High
In the first quarter, the price of photovoltaic glass remained in a high range between RMB40
and RMB32 per square meter, which was approximately RMB11 to RMB14 higher than the
same period in previous years. It is a prerequisite for photovoltaic glass manufacturers to
maintain high profitability. In terms of product mix, the proportion of thin glass with high
gross margin increased to over 30% by 19 ppts yoy. The continued optimization of the
product mix increased the gross margin. The Company recorded a 58.2% gross margin in the
first quarter, an increase of 18.4 ppts yoy, and a slightly decrease of 0.3 ppts qoq.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

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.

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