Hengtong Optic-Electric (600487) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥42.03 billion, up 31.13% year-over-year; net profit attributable to shareholders was ¥3.12 billion, up 93.38% year-over-year.

• Operating cash flow improved to ¥3.15 billion from a negative ¥864.79 million in H1 2025.

• Gross margin for optical communications exceeded 60%, with segment revenue up over 130% year-over-year.

• The company continued to invest in R&D, with H1 2026 R&D expenses at ¥1.44 billion, up 38.56% year-over-year.

• Major strategic moves included international expansion, new product launches in AI and optical fiber, and acquisition of Cabelauto in Brazil.

Financial highlights

• H1 2026 revenue: ¥42.03 billion (+31.13% YoY); net profit: ¥3.12 billion (+93.38% YoY).

• Operating profit: ¥3.58 billion (+92.87% YoY); basic EPS: ¥1.29 (+95.45% YoY).

• Net assets attributable to shareholders: ¥33.71 billion (+6.06% from year-end 2025).

• Cash flow from operations: ¥3.15 billion (vs. -¥864.79 million in H1 2025).

• Adjusted net profit (excluding share-based payments): ¥3.39 billion (+83.90% YoY).

Outlook and guidance

• The company expects continued strong demand in optical communications, driven by AI, data centers, and 5G/6G infrastructure.

• Energy interconnection and marine energy segments are forecasted to benefit from national grid investments and offshore wind expansion.

• Management will focus on R&D, global expansion, and cost control to sustain growth.