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Investing.com - Goldman Sachs raised its price target on Fuyao Glass Industry Group Co Ltd. (HK:3606) to RMB68.00 from RMB61.00 while maintaining a Buy rating.
The investment bank cited expectations of RMB25 billion in revenue for the second half of 2025, representing a 19% year-over-year increase. This growth is supported by projected 7% year-over-year growth in China passenger vehicle wholesales during the second half of 2025.
Goldman Sachs forecasts gross margin improvement to 38.5% in the second half of 2025, a 1.5 percentage point increase compared to the first half, driven by product mix optimization and declining freight rates.
The firm also projects operating margin to reach 23.7%, representing increases of 2.6 percentage points year-over-year and 1.6 percentage points compared to the first half of 2025, with enhanced operating leverage contributing to the improvement.
Following these projections, Goldman Sachs has raised its 2025-2027 earnings per share estimates by 9%-12%, resulting in 12-month target price increases of 12% and 11% for Fuyao’s A and H shares respectively, implying potential upsides of 21% and 1%.
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