福耀玻璃 (600660.SH): Fuyao Glass: 3Q26 a miss; cut estimates by 6-7%

Fuyao-A/H shares fell 7.2%/6.5% on 21 October (vs. SSE -0.6%, HSI -0.9%) following the company's 3Q26 results. Earnings significantly missed expectations due mainly to lower ASP growth, higher selling expenses and a higher effective tax rate. Revenue rose 2.5% y/y and 5.1% q/q to Rmb12.2bn, with auto glass ASP up approximately 6.5% y/y excluding FX; GPM reached 38.0%, broadly flat y/y but down 2.2ppts q/q on higher freight costs and the high 2Q base; net profit fell 9.9% y/y to Rmb2.0bn. On the earnings and J.P. Morgan NDR calls, management highlighted normalized overseas aftermarket purchasing, continued product upgrades and improving capacity utilization as key supports for 2027 growth, and expects global auto production to remain broadly flat or grow slightly in 2027. We maintain our Neutral rating on Fuyao Glass-A/H, as we see the valuation as fair and see limited catalysts ahead, trimming 2026E/27E net profit by 7%/6% and cutting our Jun-27 A/H PT to Rmb50/HK$50.