Citigroup released a research report stating that XINYI GLASS (00868) exceeded market expectations in the first half of the year in terms of revenue, gross margin, and net profit. However, the bank anticipates more significant cost pressures in the second half of the year, leading it to reduce the target price from HK$11.7 to HK$10.3, while maintaining a "Neutral" rating.

The bank noted that the company's revenue for the period fell 3% year-on-year, which was 2% higher than market expectations. The gross margin stood at 30.1%, down 1.5 percentage points year-on-year, but 1.2 percentage points above market forecasts. Net profit increased by 17% year-on-year, exceeding market expectations by 18%.

In response to lower capital expenditure, Citigroup has raised its net profit forecast for the current year by 1%, but has reduced its projections for 2027 to 2028 by 2% to reflect gross margin pressures expected from the second half of this year.