BOC International projects FUYAO GLASS (03606) will achieve 13%-14% year-on-year revenue growth in the second quarter, reaching RMB10.7-10.8 billion. This expansion stems primarily from accelerated domestic automotive glass revenue—forecast to surge over 15% annually—coupled with steady overseas sales momentum. The institution maintains its "Buy" rating while elevating the target price from HK$65 to HK$72, calculated at 20 times projected 2025 earnings.

The upcoming Q2 results announcement could catalyze a reversal of the stock's underperformance this year. Anticipated gross margins are expected to climb over 1 percentage point beyond Q1's 35.4%, fueled by enhanced scale efficiencies, reduced automaker rebate pressures, and declining costs for materials like soda ash and freight. A substantial euro appreciation against the yuan should contribute additional foreign exchange gains exceeding RMB300 million, potentially driving quarterly net profit to a historic RMB2.5-2.6 billion range.

Overseas operations show promising improvements: U.S. facilities are projected to boost operating margins through heightened Phase-I capacity utilization and diminished Phase-II losses. Full-year automotive glass shipments should hit 5.1 million units, surpassing the initial 13% operating margin target. Meanwhile, European subsidiary SAM is narrowing its operating deficit, with Q2 losses expected to shrink toward breakeven from Q1's €2.9 million shortfall.

BOC International maintains revenue projections but raises 2025-2026 net profit forecasts by 5%-11% to RMB8.8-9.2 billion, reflecting superior cost containment, supplementary forex benefits, and overseas profitability gains. Among Chinese auto component manufacturers, FUYAO GLASS stands out through strategic global capacity deployment—particularly its decade-long U.S. manufacturing buildout—which fortifies operational resilience and risk mitigation capabilities amid current geopolitical turbulence.