Woer Heat-Shrinkable Material (09981) shares rose more than 3%, up 3.4% as of press time to HK$7.9, with a turnover of HK$6.8002 million.
On the news front, Woer Heat-Shrinkable Material recently announced its third-quarter results. Huatai Securities pointed out that the company achieved revenue of 7.441 billion yuan in 9M26, up 22.34% year-on-year; net profit attributable to parent was 877 million yuan, up 6.77% year-on-year. On a quarterly basis, 3Q26 revenue reached 2.788 billion yuan, up 30.46% year-on-year and up 6.37% quarter-on-quarter; net profit attributable to parent was 311 million yuan, up 17.84% year-on-year and down 7.33% quarter-on-quarter.
The bank believes that the quarter-on-quarter decline in 3Q26 net profit attributable to parent was mainly due to rising raw material prices combined with insufficient capacity utilization of high-speed communication cable production, which put pressure on gross margins. However, Huatai Securities stated that with the evolution of NVIDIA's Blackwell/Rubin architecture, copper connections still offer relative advantages such as cost-effectiveness and low power consumption in short-distance interconnect scenarios within cabinets. NVIDIA has used approximately 5,000 copper cables for Scale up interconnect within cabinets since the GB200 NVL72 rack, and the Vera Rubin NVL72 rack continues this application.
As a leading domestic enterprise in high-speed communication cables, the company's production processes and equipment scale are both in the industry's first tier, and its downstream customers include leading companies in the copper connection industry such as Amphenol, Molex, TE Connectivity, Harting, and Luxshare. The bank expects that with customer project introduction and increased utilization of existing capacity, fixed cost dilution is expected to drive profitability improvement in the high-speed communication cable business.
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