XINYI GLASS (00868.HK) target reduced to $6.5, rated Overweight - JPM

Dragged by the weaker property marker in mainland China, XINYI GLASS (00868.HK)  0.000 (0.000%)    Short selling $5.73M; Ratio 12.196%     saw float glass prices drop in May and June. Coupled with higher costs of natural gas and soda ash, and the decline of RMB exchange rate, the group posted a profit warning for the results in the first half of the year, JP Morgan noted in a report.

However, the group's share price has declined nearly 30% in the last three months, as compared to a 7% gain for Hang Seng Index during the same period. The broker reduced the company's 2014-15 sales forecast by 14% and lowered the earnings forecasts for 2014-2015 to reflect the drop of float glass pricing power. Accordingly, the target price was slashed from $10 to $6.5, with an Overweight rating.