In a report released today, Shelley Wang from Morgan Stanley maintained a Hold rating on Fuyao Glass Industry Group Co., Ltd. Class H, with a price target of HK$53.50.
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Shelley Wang has given his Hold rating due to a combination of factors, balancing Fuyao’s solid pricing power with offsetting risks. The company delivered an 11% year-on-year increase in auto glass ASP in 1Q26, outpacing its longer-term guidance and reflecting a richer product mix supported by stronger sales of higher-end vehicles and greater penetration of value-added offerings.
At the same time, shipment volumes declined, and while Fuyao continued to outperform broader auto production trends, this limits near-term growth momentum. Looking ahead to 2Q26, improving utilization and seasonal strength in U.S. operations should aid margins, but elevated natural gas costs and the likelihood of higher customer rebates constrain profitability, leading Shelley Wang to adopt a more neutral stance on the stock.
According to TipRanks, Wang is an analyst with an average return of -27.1% and a 10.00% success rate.