FUYAO GLASS (03606) rose nearly 3% in morning trading before noon. At the time of writing, the stock was up 2.55% to HKD 64.4, with a turnover of HKD 106 million.

On the news front, a Changjiang Securities research report noted that against the backdrop of global automotive production and sales pressure in the first quarter of 2026, FUYAO GLASS achieved first-quarter revenue of RMB 10.41 billion, a year-on-year increase of 5.1% but a sequential decrease of 16.6%. The revenue growth rate continued to outperform the global downstream market. This performance was driven by an increased proportion of high value-added glass and continued market share gains.

In the first quarter of 2026, overseas costs such as natural gas, electricity, and sea freight rose. However, leveraging its excellent cost control capabilities and benefiting from lower domestic costs for soda ash and natural gas, the company achieved a gross margin of 37.4% for Q1 2026. This represents a year-on-year improvement of 2.0 percentage points and a sequential increase of 0.3 percentage points.

The report further stated that the profitability of FUYAO GLASS's automotive glass business far exceeds that of its competitors, some of whom have shifted their strategic focus due to weaker profitability in their own glass operations. By deepening its focus on the automotive glass business, the company is expected to continue increasing its global market share.

The company is expanding the boundaries of "a single piece of glass," strengthening research into trends of smart and integrated glass, and actively advancing its aluminum trim business. The aluminum trim business has synergistic effects with the automotive glass segment and holds significant long-term growth potential, which is expected to bring entirely new incremental growth.