FLAT GLASS (06865) reported a 51% year-on-year decline in net profit for the first three quarters to RMB 638 million, while its third-quarter net profit surged 143% quarter-on-quarter to RMB 376 million, exceeding market expectations.
UBS attributed the strong performance to increased sales driven by inventory destocking, price hikes since September, lower sodium carbonate costs, and improved operational efficiency. The bank raised its 2023 EPS forecast for the company by 13%, reflecting higher sales and margin expectations, demand and price recovery since August, and effective cost reductions.
UBS lifted its target price for the stock from HK$13.4 to HK$14.7, maintaining a "Buy" rating.
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