Smart-Core Holdings (2166) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 143.8% YoY to HK$6,818.3m; profit for the period increased 495.9% to HK$289.4m, while profit attributable to owners rose 498.4% to HK$290.0m.

• All four business units recorded YoY sales growth, led by memory; the interim dividend rose to HK5 cents per share from HK3 cents.

Financial highlights

• Revenue was HK$6,818.3m versus HK$2,796.2m; gross profit rose 152.0% to HK$408.9m.

• Gross margin increased to 6.0% from 5.8%; net profit margin was 4.2% versus 1.7%.

• Profit before tax increased to HK$329.5m from HK$55.6m; profit for the period was HK$289.4m versus HK$48.6m.

• Profit attributable to owners was HK$290.0m versus HK$48.5m; basic and diluted EPS were HK63.35 cents and HK62.59 cents.

• R&D expenses rose 10.8% to HK$19.7m; administrative, selling and distribution expenses were HK$132.8m, and finance costs rose to HK$30.6m.

Outlook and guidance

• H2 memory demand is expected to remain strong; tight conventional DRAM supply is forecast to persist, with prices expected to peak in H2 and remain elevated.

• Smart terminal priorities include AI PCs, AI smartphones, wearables, smart vision and robotics as on-device AI adoption broadens.

• Computing infrastructure plans include deeper optical-chip partnerships and customer expansion; 800G module shipments are forecast to more than double in 2026, with 1.6T modules entering mass production.

• Mixed distribution initiatives include AI-enabled operating upgrades, stronger compliance systems and global network expansion.