Jinwu Financial News | According to the Guolian Securities Research Report, Xinyi Glass (00868) announced annual results for the year 23, with revenue of HK$26.8 billion in 23, +4% year-on-year; net profit to mother of HK$5.4 billion, +5% year-on-year. Of these, 23H2 revenue was HK$14.2 billion, +17% YoY, +12% month-on-month; net profit to mother was HK$3.2 billion, +77% YoY, +50%. According to the bank, 23H2's revenue growth momentum is strong, benefiting from a marginal improvement in demand for float glass. The profit margin of float glass improved a lot in the second half of the year, and there were also positive changes in deep-processed glass.
According to the bank, the company's three major glass businesses all rank in the first tier of the industry, and their performance is resilient. The company's float glass business continues to grow due to internationalization, etc., and the profitability stability and scale growth resilience of automotive glass and architectural glass are worth looking forward to. On the other hand, a stable dividend policy (the average dividend ratio was 49.4% in the past 5 years and 49.3% in 23) gave the company good public attributes. The bank expects the company's 24-26 revenue to be HK$277/288/HK$30.2 billion, respectively, +3.5%/+3.9%/+4.7% year-on-year; net profit to mother was HK$59/65/7.2 billion, respectively, or +9.2%/+11.6%/+9.7% YoY. Referring to comparable companies, the company was given a 24-year 10x target PE, corresponding to a target price of HK$13.87, maintaining a “buy” rating.