Xinyi Glass tumbles in Hong Kong after reporting 38.5% drop in first half

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

China’s Xinyi Glass tumbled as much as 7.6% to hit HK$14.4, before closing the morning session on Tuesday down 5.6% at HK$14.72.

Xinyi Glass said its first-half net profit slid 38.5% from a year earlier to HK$3.3 billion and declared an interim dividend of 40 HK cents a share, down 39％ on year. Revenue over the period grew slightly by 0.5% to HK$13.65 billion.

Credit Suisse lowered the target price for Xinyi Glass to HK$27.1 from HK$39, maintaining a rating of Outperform.

The bank Xinyi Glass’s first-half net profit is largely in line with estimates of HK$2.69 – HK$3.5 billion, and the drop was mainly due to sliding prices of float glass which lowered the business’ gross market by 41% from a year earlier. The bank lowered the forecast of Xinyi Glass’ profits in 2022 – 2024 by 8.2% – 9.5% to reflect falling pries of float glass.