Goldman Sachs has issued a research report maintaining a "Buy" rating on the H-shares of FUYAO GLASS, with a 12-month target price of HK$73 based on a 2026 forecast price-to-earnings ratio of 16.7 times. For the A-shares, the target price remains at RMB 73, based on a 2026 forecast P/E ratio of 18.5 times. The firm adjusted its earnings per share forecasts for 2026 to 2028, ranging from a 1% decrease to a 2% increase, reflecting slower shipment growth and a larger increase in average selling prices.

FUYAO GLASS reported a 5% year-on-year increase in revenue for the first quarter of this year, despite a 5.2% decline in global automotive industry production. The company's shipment volume decreased by only 3.7%, indicating continued market share gains. Management expects the overall impact of cost inflation, such as from natural gas and freight, to be limited amid geopolitical tensions, as soda ash prices and freight costs are projected to decline for the full year. The company anticipates that capitalized construction-in-progress will remain stable in 2026.

Goldman Sachs expects the first quarter to be the seasonal low point for auto production and projects an acceleration in full-year revenue growth as gross and operating profit margins improve. For the full year of 2026, the firm forecasts the company's revenue to reach RMB 50.5 billion, a 10% year-on-year increase, driven by an 8.4% rise in average selling prices and a steady 1.5% growth in sales volume. The gross margin is projected at 37.8%, with EBIT increasing by 13% year-on-year and the EBIT margin reaching 22.5%, up 0.5 percentage points from the previous year.