Hengtong Optic-Electric (600487) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 27.14% YoY to RMB22.34bn; attributable net profit increased 299.10% to RMB3.04bn, driven primarily by growth in optical communications.

• 9M revenue reached RMB64.37bn, up 29.72% YoY; attributable net profit was RMB6.16bn, up 159.42%, and adjusted net profit was RMB6.15bn, up 162.80%.

Financial highlights

• 9M operating profit was RMB6.96bn versus RMB2.74bn a year earlier; total profit reached RMB6.96bn, up 154.70% YoY.

• 9M consolidated net income was RMB6.39bn versus RMB2.54bn; basic and diluted EPS were RMB2.54, each up 159.18% YoY.

• Operating cash flow increased 70.57% YoY to RMB841.5m in 9M; cash from sales and services was RMB70.71bn.

• Total assets were RMB83.85bn at Sep. 30, up 15.87% from year-end; parent-attributable equity was RMB36.97bn, up 16.33%.

Outlook and guidance

• Backlog exceeded RMB24bn for submarine cables, offshore engineering and land cables; marine communications backlog exceeded RMB6bn, and PEACE subsea cable system operations backlog exceeded US$300m.

• Proposed private placement of up to RMB6.636bn would fund optical communications and energy interconnection projects and working capital; execution requires shareholder and regulatory approvals.