The Zhitong Finance App learned that Xinyi Glass (00868) rose more than 8%. As of press release, it had risen 7.34% to HK$9.51, with a turnover of HK$104 million.
According to the news, Xinyi Glass recently released the “Xinyi High Quality Float Glass Price Index”, and prices in the domestic float glass market are expected to rise steadily in May 2024. On the supply side, the actual effective production capacity of float glass is expected to decrease. As profits of float glass are drastically reduced, some elderly kilns plan to be cooled down, and supply reserves are expected to decline; on the demand side, demand is expected to improve in May, and float glass prices are expected to rise sequentially in May.
Orient Securities pointed out that the 2024 float glass boom may be cautious, but there is no need to be overly pessimistic about the company's profits. Since the beginning of 2024, demand for completion has weakened, and the glass market is under some pressure. Judging from current trends, the float glass boom may be under further pressure. However, from the cost side of the industry, as soda ash production capacity continues to be released and the supply and demand pattern continues to be optimized, the long-term price trend is expected to decline, and the pressure on glass costs will continue to ease. Furthermore, the profit periodicity of the company's construction glass, automotive glass and other businesses is weak, which can hedge against performance pressure to a certain extent.