Yesterday, according to reports from WDTN, a television station under the NBC network, and local media Dayton Daily News, the U.S. Department of Homeland Security and other law enforcement agencies conducted an investigation on Fuyao Glass's U.S. company located in Moraine on Friday, and simultaneously carried out raids on several residences in the Dayton area.

On July 29th, Fuyao Glass's stock plummeted nearly 6 points in China's A-share market. The report indicated that Acting Special Agent Murphy, who is in charge of homeland crime investigations in Ohio and Michigan, revealed that the investigation team executed 28 federal search warrants in the Dayton area.

Murphy stated that the main focus of the investigation is financial crimes, money laundering, labor exploitation, and possible human trafficking. He added that law enforcement agencies are working hard to find victims and provide them with necessary services while collecting evidence related to the investigation.

In addition, Murphy reminded the public in a statement to stay away from the areas of law enforcement activity and encouraged those with information to provide clues to the law enforcement departments.

According to a report from Huanqiu, a recording inside Fuyao's factory showed a Homeland Security agent assuring workers that the company is not the subject of the investigation,

and there are no plans to make arrests at the factory that day. The agent said their goal is to talk to everyone and understand what they have seen and heard. He also apologized for the disturbance to the workers and promised to complete the investigation as soon as possible.

Fuyao Glass U.S. company issued a statement to WDTN, confirming that federal and local law enforcement officers visited the company and stated that the company fully cooperated with the investigation.

The statement mentioned that some production lines of the company were suspended due to the investigation, but the third shift production has resumed, and the company believes that production and delivery will not be affected by this investigation.

Fuyao Glass Development is Stable

Development History of Fuyao's U.S. Factory:

In 2014, Fuyao Group acquired the closed General Motors factory in Moraine and began investing in factories in the United States. In October 2016, Fuyao Glass's U.S. factory was officially completed and put into production.

In August 2022, the company announced an additional investment of $650 million in the United States to build projects such as coated automotive glass, tempered laminated side windows, and float glass. In 2023,

the U.S. factory's revenue was 5.57 billion yuan, with a net profit of 494 million yuan, accounting for about 17% of the revenue.Northeast Securities Research Institute:

In the short term, the global downstream car market is expected to grow steadily in Q2, with scale effects and cost improvements, the company's gross profit margin is expected to continue to improve, and the expected Q2 revenue and

operating performance are expected to grow steadily.

In the long term, as the most focused global leader in automotive glass, Fuyao's market share continues to increase. Coupled with the configuration of the skylight in the new energy era, the value per car continues to increase, which drives the company's continuous growth. It is expected that the company's net profit attributable to the parent company from 2024 to 2026 will be 6.38 billion, 7.15 billion, and 8.46 billion yuan, respectively, with corresponding PE ratios of 19.3X, 17.2X, and 14.6X.