AirTAC International Group (1590) investor relations material

Executive summary

• Q3 2026 revenue rose 23% YoY to RMB 2.427bn; operating income rose 40% to RMB 823m and net profit rose 20% to RMB 600m.

• Pneumatic demand is recovering; shipments and orders exceeded expectations, with management expecting the upcycle to last beyond 2–3 years.

Financial highlights

• Q3 revenue was RMB 2.427bn, gross profit RMB 1.198bn, and operating income RMB 823m; YoY growth was 23%, 32%, and 40%, respectively.

• Q3 net profit was RMB 600m, up 20% YoY; EPS was NTD 14.23. Net non-operating income was RMB 11m, including an RMB 8m government subsidy.

• 9M revenue was RMB 7.238bn, up 23% YoY; gross profit rose 33% to RMB 3.552bn and operating income rose 42% to RMB 2.469bn.

• 9M net profit rose 35% YoY to RMB 1.898bn; EPS was NTD 44.14.

Outlook and guidance

• FY26 revenue growth guidance remains above 20% in RMB terms; with growth above 20%, operating margin guidance is around 34%.

• Q4 2026 revenue is expected to be flattish QoQ, better than normal seasonality; Q4 2025 was unusually strong, making this quarter’s YoY growth lower than the first three quarters.

• No formal FY27 guidance yet; current outlook is low-to-mid-single-digit pneumatic industry growth and business revenue growth around 10% above industry growth.

• If FY27 revenue grows 10% and raw-material cost increases remain at or below 5% YoY, gross margin could be around 50% and operating margin above 34%.

• FY26 CapEx budget increased to around NTD 3bn; inventory turnover was around 110 days, with utilization expected to rise in Q4 and inventory days targeted at 130–140.