In "Major Banks," China International Capital Corporation (CICC) reports that XINYI SOLAR's photovoltaic glass gross margin has significantly increased, raising the target price to 3.96 yuan

The research report from China International Capital Corporation indicates that XINYI SOLAR (00968.HK) announced its 2025 performance, with revenue of RMB 20.861 billion, a year-on-year decline of 4.8%; net profit attributable to shareholders of RMB 844 million, a year-on-year decrease of 16.3%, corresponding to earnings per share of RMB 0.09, a year-on-year decline of 17.6%, which is in line with expectations.

The firm stated that the company has new production capacity coming online overseas and will increase the export ratio of photovoltaic glass, with overseas profit margins higher than domestic ones, leading to an overall profit margin expected to rise compared to last year. The company's profit expectations for 2026 remain unchanged, while the net profit for 2027 has been revised up by 3.3% to RMB 2.432 billion.

The firm maintains a "Neutral" rating for the company, but due to strong overseas demand this year, the company's profits are expected to exceed expectations, raising the target price by 10% to HKD 3.96, corresponding to a price-to-earnings ratio of 15.8 times for 2026 and 13.1 times for 2027, indicating an upside potential of 14.4% compared to the current stock price