UBS maintains a Buy rating for FUYAO GLASS despite lowering its target price from HKD93 to HKD85. This adjustment reflects a 4%-5% reduction in earnings forecasts for 2026-2028 due to lower-than-expected domestic passenger vehicle shipments and increased working capital investment. However, the company is expected to benefit from improved average selling prices and resilient operating profit, supported by strong order guidance from domestic automotive OEMs and growth in North American and European sales.
