Fuyao Glass(3606 HK) Expands the Boundary of Glass Business January 19, 2021 152

PSR Recommendation: BUY Status: Maintained
Target Price: HKDHKD59.40

Investment Summary
Fuyao Glass Plans to Raise Approximately HK$4.1 Billion through Private Placement and
Initiates Photovoltaic Glass Business
Recently, Fuyao Glass announced that it planned to issue no more than 101 million
additional H shares, which accounted for 20% of the total shares issued by the Company.
The issue price should not be less than 80% of the average closing price of the earlier five
transaction days as per the day determined for placement or subscription. Based on the
latest closing price of the Company’s H shares, it is estimated that the total raised funds will
not exceed HK$4.1 billion/RMB3.4 billion. All funds will be used for replenishment of
operating capital, repayment of interest-bearing debts, R&D projects, optimization of the
Company’s capital structure, expansion into the photovoltaic glass market and other general
purposes.
If stocks are issued according to the cap, the H-share equity will be increased by
approximately 16.7% after the additional issuance, which is equivalent to an increase of
3.87% to the total equities. Influence of the dilution is limited.

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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