Positive profit alert
■ Xinyi Glass issued a positive profit alert, saying that the Company’s net
profit is expected to increase by 260% to 290% in 1H21.
■ We raised our forecasts for Xinyi Glass and organized an investors call
earlier this month. The positive profit alert echoes our positive view.
■ Our forecasts already factored in a lower contribution from Xinyi Solar
[0968.HK].
■ We maintain our ADD rating, with a higher target price of HK$36.16, based
on 16x 2021 P/E (higher than the historical mean of 14x).