CLSA has issued a research report commenting on FUYAO GLASS's (03606) first-quarter results for fiscal year 2026. Net profit declined by 15.7%, primarily impacted by foreign exchange losses amounting to RMB 439 million. Excluding the foreign exchange impact, operating net profit increased by 20% year-on-year. Revenue grew 5% year-on-year, demonstrating resilience despite a decline in passenger vehicle sales in both China and the United States. The gross profit margin rose by 2 percentage points year-on-year and 0.4 percentage points quarter-on-quarter to 37.4%, benefiting from increased contributions from high value-added products and improved production efficiency. The report stated that despite macroeconomic uncertainties, FUYAO GLASS is expected to achieve resilient and sustained profit growth, supported by its pricing power within the industry and increasing penetration of high value-added products. CLSA maintained its "Outperform" rating on both the H-shares of FUYAO GLASS and the A-shares of Fuyao Glass Industry Group Co.,Ltd. (600660).