Xinyi Solar forecasts up to 50% higher H1 profit

China-based glass maker Xinyi Glass Holdings Limited (HKG:0868) earlier this week said that it expects its profit for the first half of 2020 to be between 35% and 50% higher than in the same period last year.

In the first half of 2019, the company booked a net profit of HKD 952.7 million (USD 122.9m/EUR 108.0m). The latest forecast increase, based on preliminary data for the first six months of 2020, is mainly due to the significantly higher profit contribution from Xinyi Solar's solar glass business.

The company said it expects an increase in the sales volume from its solar glass products in the first half, thanks to stronger demand for solar glass for use in double-glass and bifacial solar modules. In addition, the average market prices of the company's major solar glass products are expected to be higher.

The allocation of more manufacturing capacity to high value-added solar glass products and lower production costs on some raw materials and energy will also contribute to the stronger profit.

The company's first-half results are expected by the end of August.

(HKD 1.0 = USD 0.129/EUR 0.113)

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