Zhongtai Securities: Float glass — 2025 sector revenue and net profit
attributable to parent fell YoY 8.3% and 64.2%. Prices remained depressed in
2026Q1, dragging leading producers into loss and sending industry net profit
attributable to parent down 140.5% YoY. Most production lines face severe
cash‑flow stress; widespread losses are accelerating cold maintenance and
reducing operating capacity. Policy push to curb internal overcapacity and
tighter environmental constraints — including Shahe coal‑to‑gas retrofits and
cleaner conversions of Hubei petroleum‑coke lines — raise restart difficulty,
making supply rationalization probable and structural improvement achievable. PV
glass — 2025 prices stayed under pressure; sector revenue and net profit
attributable to parent fell YoY 13.3% and 37.2%. Prices weakened further in
2026Q1 with larger profit declines. The industry is in deep short‑term losses;
more cold maintenance and outlet closures should accelerate supply clearing,
with a weak cyclical recovery possible in H2. Market leaders retain a clear
profitability edge from cost, scale and overseas bases, with overseas operations
an important earnings driver.
