BOC International expects Follett Glass (06865)'s profit margin to rise sharply in the second quarter.
The Zhitong Finance App learned that BOC International released a research report saying that Follett Glass (06865)'s profit margin is expected to rise sharply in the second quarter, but it will decline in the second half of the year due to oversupply, and the current valuation appeal is limited. The bank maintains a profit forecast and a target price of HK$19.5, maintaining a “neutral” rating.
The bank pointed out that the company's first-quarter results slightly exceeded expectations. Net profit attributable to mother increased by 48.6% year on year to 760 million yuan, 5% higher than the bank's expectations, mainly due to lower than anticipated expenses for the period and the return of impairment losses. Optoelectronic glass was quickly removed from storage in March, driving prices up 3% in April. At the same time, prices of soda ash and natural gas fell, driving the industry's profit margin to improve markedly. I continued to go to the library in the first half of April, but slowly began to accumulate in the second half of the month.