Goldman Sachs has released a research note announcing a downgrade of Fuyao Glass (03606) from "Buy" to "Neutral," with target prices for the A-share (600660.SH) and H-share reduced to RMB 65 and HK$64, respectively.

The investment bank cited second-quarter revenue and net profit figures that fell short of expectations, attributing the miss to slower overseas growth and foreign exchange losses. As a result, Goldman Sachs has cut its earnings per share forecast for this year by 6%, reflecting lower revenue projections and currency headwinds. However, the firm has raised its EPS estimates for the next two years by 3% and 6%, respectively, based on expectations of better margins supported by continued adoption of high value-added products and robust cost control measures.

While acknowledging the company's margin strength and ongoing market share gains, Goldman Sachs anticipates that future revenue and net profit growth will decelerate, given a stagnant global automobile production outlook and already high market penetration rates.