Follett Glass (06865) fell more than 7% in the intraday period. At press time, it was down 4.26% to HK$16.18, with a turnover of HK$118 million.
The Zhitong Finance App learned that Follett Glass (06865) fell more than 7% in the intraday period. As of press release, it was down 4.26% to HK$16.18, with a turnover of HK$118 million.
According to the news, Follett Glass's 2023 financial report shows that the company achieved operating income of 21.524 billion yuan last year, an increase of 39.21% over the previous year; net profit to mother was 2.76 billion yuan, an increase of 30% over the previous year. However, the company's gross margin for photovoltaic glass in 2023 was 22.45%, which is at an all-time low between 2016 and 2023. In 2020-2022, the gross margin of the company's photovoltaic glass was 49.4%, 35.7% and 23.31%, respectively. Haitong International previously pointed out that although the growth rate of new photovoltaic glass production capacity will slow down in 2023, the release of overall demand falls short of expectations, and prices fluctuate mainly due to low prices. The bank cut 24-25 gross margin by 2.3 pct/1.2 pct.
Furthermore, a recent BOC International research report pointed out that the rapid removal of photovoltaic glass in March drove prices up 2.9% in April. Coupled with falling raw fuel prices, the industry's profit margin clearly rebounded. However, the bank believes that the industry currently has a large amount of production capacity under construction, and will soon ignite a large amount of production capacity, but it is unlikely that demand will continue to rise sharply at a high base, so the industry will once again be oversupplied in the second half of the year, especially in the fourth quarter.