An unusual event occurred in the A-share market on the evening of Saturday, July 18th, as five companies listed on the Growth Enterprise Market, all operating in high-growth sectors, released preliminary profit forecasts.
This came just after a significant correction in the Growth Enterprise Market index, which fell 7.15% in the previous trading session on July 17th. Among these five firms, Tianfu Communication Technology Co., Ltd. (SZSE: 300394) and Sigmastar Technology Ltd. (SZSE: 301536) both saw their shares drop more than 10% on that day.
Details of the Profit Forecasts
Tianfu Communication Technology Co., Ltd. (SZSE: 300394) anticipates its net profit attributable to shareholders for the first half of 2026 to be between 1.124 billion yuan and 1.304 billion yuan, representing a year-on-year increase of 25% to 45%. The company attributed the growth primarily to the accelerated development of the global artificial intelligence industry and data center construction, which drove sustained demand for high-speed optical components. Despite some supply constraints for certain materials, the company leveraged its reusable technology platform and vertically integrated product advantages. However, increased financial expenses due to foreign exchange losses negatively impacted profit growth, while costs associated with employee equity incentives had a positive effect. The company's stock price had surged over tenfold between April 2025 and early June 2026 but has recently been in a correction phase.
Sigmastar Technology Ltd. (SZSE: 301536) expects its first-half 2026 net profit attributable to shareholders to reach between 820 million yuan and 900 million yuan, a staggering increase of approximately 583.72% to 650.42% compared to the same period last year. Revenue is forecast to grow 86.74% to 93.86% to a range of 2.62 billion yuan to 2.72 billion yuan. The company, a leading designer and supplier of visual AI system-on-chip (SoC) products, cited two main reasons for the explosive growth: a full-scale surge in demand for edge AI applications across various sectors and the resilience of its supply chain, which ensured stable order fulfillment and production capacity.
Easpring Material Technology Co., Ltd. (SZSE: 300073) forecasts a net profit attributable to shareholders of 480 million yuan to 530 million yuan for H1 2026, marking a year-on-year rise of 54.26% to 70.33%. The global leader in lithium-ion battery cathode materials stated it seized opportunities in the power, energy storage, and consumer markets, leading to a significant increase in product sales. Its high-nickel and phosphorous-based products performed strongly in the electric vehicle and large-scale energy storage sectors, respectively.
Lizhong Group Co., Ltd. (SZSE: 300428) projects its H1 2026 net profit attributable to shareholders to be in the range of 540 million yuan to 585 million yuan, up 34.57% to 45.78% year-on-year. The company, with businesses in aluminum-based functional master alloys, recycled cast aluminum alloys, and aluminum alloy wheels, attributed the growth to optimized global capacity layout, expanding price differentials between domestic and international aluminum prices, rapid sales growth of high-value-added forged wheels, expansion into new material applications, and improved profitability at its Mexico plant.
Thunder Software Technology Co., Ltd. (SZSE: 300496) expects its H1 2026 net profit attributable to shareholders to increase by 50% to 55% to between 238 million yuan and 246 million yuan. The AI and operating system technology provider, focusing on its AIOS strategy for smart cars and other devices, stated the growth was driven by its globalization efforts and the deepening application of AIOS technology across multiple terminals and scenarios. The company forecasts its revenue for the period to grow over 30% year-on-year.
Market Interpretation
Market observers view the concentrated release of positive H1 2026 profit forecasts by these five GEM companies as a clear stabilizing signal. The announcements cover several high-growth sectors, including AI computing power (Tianfu Communication), edge AI chips (Sigmastar Technology), new energy materials (Easpring Material), aluminum alloy new materials (Lizhong Group), and AI operating systems (Thunder Software). This comes against the backdrop of the sharp 7% decline in the Growth Enterprise Market index on July 17th.
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