Hengtong Optic-Electric (600487) Q1 2026 earnings summary

Executive summary

• Achieved revenue of RMB 17.79 billion in Q1 2026, up 34.09% year-over-year, with net profit attributable to shareholders of RMB 1.11 billion, up 98.53% year-over-year.

• Core business segments saw robust growth, driven by increased demand in optical communications, price increases, and higher deliveries in marine communications and energy products.

• Order backlog remains strong, with RMB 22 billion in energy interconnection and RMB 7 billion in marine communications, plus over USD 300 million in PEACE submarine cable system orders.

Financial highlights

• Operating income: RMB 17.79 billion, up 34.09% year-over-year.

• Net profit attributable to shareholders: RMB 1.11 billion, up 98.53% year-over-year.

• Net profit excluding non-recurring items: RMB 1.13 billion, up 107.68% year-over-year.

• Basic and diluted EPS: RMB 0.4563, up 98.56% year-over-year.

• Operating cash flow: -RMB 193.66 million, down from RMB 76.65 million in Q1 2025, mainly due to commodity futures price fluctuations and increased margin requirements.

Outlook and guidance

• Company expects continued high-quality growth, focusing on core business, R&D investment, and sustainable development.

• Action plan for 2026 emphasizes operational quality, investor returns, and governance improvements.