Fuyao Glass Industry Group (3606.HK): 3Q26 Earnings Call Takeaways

Morgan Stanley's takeaways from Fuyao Glass's 3Q26 earnings call. Management maintained its 6-7% ASP CAGR guidance over the next decade: ASP grew 6.4% YoY in 9M26, or 8.1% on an adjusted basis (ex Rmb appreciation and tariff recovery), with slower 3Q26 growth due to a higher base as dimmable glass started shipment from 3Q25. High-value-added products reached 59.95% of 9M26 revenue (+7ppt YoY), driven by dimmable glass (+3.7ppt), soundproof glass (+1.9ppt) and HUD glass (+1.2ppt). Auto glass is gaining share in Europe as competitors rationalize capacity, but the European aluminum trim subsidiary SAM remained loss-making with a €6.23mn loss in 9M26, implying 3Q26 loss widened to €4.06mn on order volatility. The US plant delivered a 17.36% operating margin in 9M26, implying 15% in 3Q26;