production capacity of TCO glass further by investing over HK$100m in a production line with annual
capacity of 2.75m sq m of TCO glass. The new production line, which is 4x the production capacity of
the first production line to be commissioned in 2H this year, will commence production in 3Q next year.
We have highlighted previously that the first TCO line is only a pilot project and the company is likely to
expand the capacity further, especially in light of the Chinese government's latest policy to stimulate
domestic demand for solar power by subsidising buildings incorporating the application of solar power.
The company's own production is capable of supplying PV float glass for 5x the expanded TCO capacity.
While our current TP and rating are HK$5.60 and BUY, respectively, with increased investors risk
appetite in the market and the future contribution from the new TCO capacity, we are reviewing our
earnings forecast, TP and rating for the company.
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