BofA Securities upgraded FLAT GLASS's rating from Underperform to Neutral due to its strong 3Q25 net profit of RMB376 million, which exceeded forecasts, driven by a gross margin of 16.8% that significantly surpassed the broker's expectation of 8-9%. The firm noted that FLAT GLASS has a notable profit advantage over smaller or domestically limited peers, and they believe that the gross margin of 16-17% observed over the past two quarters will establish a new long-term bottom for the company. Additionally, BofA raised its FY26 earnings forecast for FLAT GLASS by 55% and increased its target price from HKD7 to HKD12.8.
