FUYAO GLASS (03606) surged over 4%, reaching a record high of HK$79.45. As of press time, the stock was up 4.47% to HK$79.45, with trading volume of HK$216 million.

According to a UBS research report, FUYAO GLASS management provided updates on third-quarter operations. Domestic factory capacity utilization has reached approximately 87% quarter-to-date, representing a year-over-year increase of about 2 percentage points and a sequential increase of about 3 percentage points. The US Phase 1 factory maintained a relatively high capacity utilization rate of around 80%. The US Phase 2 factory's capacity expansion is progressing smoothly, with capacity utilization expected to reach approximately 40% in the second half of the year. Third-quarter transportation costs declined significantly year-over-year, which will help improve profit margins.

UBS raised its earnings forecasts for the company from 2024 to 2030 by up to 13%, reflecting faster-than-expected new capacity ramp-up and price increases in the US market. The firm raised its target price from HK$84 to HK$95 while maintaining a "Buy" rating.

Additionally, UBS expects the company's average selling prices for automotive glass to continue rising. Key driving factors include the increasing adoption rate of functional products in the domestic market, such as full glass roofs, coated glass, and dimming glass; increased contribution from high value-added products as European market electric vehicle orders materialize; price increases for US aftermarket products to offset most tariff increases; and notably, FUYAO GLASS has raised average selling prices for products supplied by its US local factories, with year-to-date average selling prices up 3% to 5% year-over-year.