Dongshan Precision expects net profit for the first half of the year to increase by 282.58%–295.78% year-on-year, with its optical module business as the key driving force | Financial Report News

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Dongshan Precision releases earnings forecast, the frenzy for AI infrastructure construction is rapidly spreading to core suppliers.

Suzhou Dongshan Precision Manufacturing Co., Ltd. released its 2026 half-yearly earnings forecast on Monday, expecting net profit attributable to shareholders of the listed company for the first half to be between 2.9 billion and 3.0 billion yuan, a year-on-year increase of 282.58% to 295.78%. The news shows the company's profitability has risen sharply, with growth far exceeding market expectations for traditional manufacturing.

The company attributes its rapid profit growth to three main drivers: traditional businesses such as consumer electronics and automotive parts remain stable; the integration effect of the optical module business is manifesting; and early investments in industries related to data centers have begun to contribute revenue. After deducting non-recurring profits and losses, net profit is estimated at 2.4 billion to 2.5 billion yuan, up 265.41% to 280.63% year-on-year, with basic earnings per share expected to reach 1.58 to 1.64 yuan. These figures have not yet been audited by an accounting firm.

Traditional business lays the foundation, optical modules expand

Dongshan Precision stated in the announcement that its traditional core businesses, such as consumer electronics and auto parts, have strong operational foundations and steadily improving performance, providing continued and predictable bottom support for overall company profits. In the same period last year, net profit attributable to shareholders was about 758 million yuan, with net profit after deduction of non-recurring items about 657 million yuan; on this high base, nearly triple growth was achieved, highlighting the restructuring power of emerging businesses to overall profitability.

The optical module business is the most emphasized new growth engine in this earnings forecast. The company stated that the integration effect of this business is beginning to show, the ramp-up of new production capacity and introduction of new customers are all in line with expectations, and both income and profit have achieved "significant growth." The continuous expansion of demand for high-speed optical interconnects driven by AI model training and inference has made optical modules a core component of data center construction, and Dongshan Precision's layout in this field is gradually entering the harvest period.

In addition to the operational contribution of the optical module business, the company’s previous equity investments in industries related to data centers have also begun to produce financial returns. The announcement described this as "gradually generating returns and effectively increasing overall current profits." This means Dongshan Precision’s profit growth is not a single line, but the result of dual drivers from business operations and investment returns. For investors, it is necessary to pay attention to the respective contribution ratios when assessing sustainability.

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