DBS: Flat Glass Group Co., Ltd. – Buy Target Price HKD23.00; RMB37.00

Don’t throw the baby out with the bathwater

• Solar glass is the only segment in the solar value chain unaffected by price war thanks to duopoly  competitive structure
• FGG offers a direct exposure to growing solar module installation volume 
• Recent share price decline is unwarranted, current H-share P/E of c.9x is attractive on absolute and historical basis
• FGG H-share is our sector top pick; Recommend BUY on H/A shares with HK$23/Rmb37 TP