FLAT GLASS (6865 HK) Demand is delayed in the short term, but the medium- and long-term industry boom is expected to continue June 19, 2020 450

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD7

Investment Summary
Results Maintained Rapid Growth
Flat Glass recorded a revenue of RMB4,807 million in 2019, up by 56.9% yoy because of the rise of unit price resulting from commission of new production capacity and the recovery of demand. The Company reported net profit attributable to the parent company of RMB717 million, up by 76% yoy; a net cash flow from operating activities of RMB510 million, up by 18.4% yoy; a weighted return on equity of 17%, up by 5% yoy.
Both the Quantity and the Price Increased, with Revenue from PV Glass Accounting for Nearly 80%
In 2019, the sales volume of PV glass of the Company reached 160 million square meters, up by 67% yoy. The gross margin of the Company increased by 5.18 ppts to 32.87% because of the recovering price of PV glass, improvement of production efficiency of the newly-commissioned production capacity and improvement of product mix (thin glass accounted for a higher proportion).

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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