Yuanjie Semiconductor Technology Co.,Ltd. (688498), a leading A-share optical chip maker, released its preliminary third-quarter 2026 earnings forecast on October 13, delivering a set of results that drew significant market attention.
The company expects third-quarter revenue of 650 million to 700 million yuan, representing year-on-year growth of 265% to 293%; net profit attributable to shareholders is projected at 403 million to 453 million yuan, a surge of 579% to 660% year on year.
The core driver behind this earnings explosion is the strong ramp-up in the data center business. The company explicitly stated that continuously rising shipments of CW (continuous-wave laser) products and robust downstream demand were the primary reasons for the sharp revenue jump in the quarter.
This assessment aligns closely with the global wave of AI computing infrastructure buildout, as the optical interconnect sector's buoyancy is rapidly transmitting from the hardware demand side up to the upstream optical chip supply chain.
Notably, the growth rate of non-GAAP net profit even exceeds that of attributable net profit 鈥?the projected increase range for non-GAAP net profit is 678% to 776%, meaning the quality of operating business earnings in the quarter is even purer.
Compared with the over 900 million yuan in non-recurring gains and losses from the revaluation of equity investments in associates in the first half, the impact of non-recurring items in the third quarter narrowed substantially, further enhancing the earnings quality of the core business.
The company's low base from the same period last year 鈥?third-quarter 2025 revenue was only 178 million yuan and net profit just 59.63 million yuan 鈥?certainly forms part of the backdrop for the high growth, but achieving nearly fourfold revenue growth within a single year goes beyond what a low-base effect alone can explain, reflecting the combined impact of improved capacity utilization and expanded market share.
Revenue Scale: Quarterly Revenue Breaks 700 Million Yuan Threshold for First Time
Yuanjie Technology's projected revenue range for the quarter is 650 million to 700 million yuan, with a midpoint of approximately 675 million yuan. Compared with 178 million yuan in third-quarter 2025, the year-on-year increment reaches as high as 522 million yuan.
This means the company achieved a leap from the "hundred-million-yuan level" to the "near-billion-yuan level" in just four quarters.
The company attributed the growth explicitly to its data center product line, especially the continued ramp-up of CW laser products. CW products are core components for light sources in optical modules.
As demand for 800G and even 1.6T high-speed optical modules surges, the supply-demand dynamics for upstream CW laser chips remain tight, giving domestic manufacturers with mass production capabilities a rare window of opportunity.
Profitability: Gross Margin Stays Elevated, Scale Effects Emerge
The company highlighted two logics for profit improvement in its announcement: first, gross margins for data center products remain at a high level; second, as business scale expands, the ratio of period expenses to revenue declined significantly year on year.
The two combined drove a substantial year-on-year jump in net profit margin.
Based on the midpoint of the forecast, the third-quarter net profit margin is estimated at approximately 62% to 65% (attributable net profit of 428 million yuan / revenue of 675 million yuan), a profitability level that ranks notably high within the A-share semiconductor sector, reflecting the company's technological barriers and pricing power advantages in its niche track.
The non-GAAP net profit margin is also above 60%, indicating that the high margin is not inflated by subsidies or investment income but represents genuine operating profitability.
Non-Recurring Items: First-Half "Distortion" Nearly Vanishes in Q3
The announcement provided detailed disclosure on non-recurring gains and losses, helping investors clarify earnings quality. In the first half of 2026, the company's total non-recurring gains and losses amounted to 92.63 million yuan, of which investment income was 92.44 million yuan, mainly from the substantial appreciation in the valuation of equity stakes in optical interconnect companies held through associates.
The company explicitly stated that the impact of this investment income on the third quarter alone was "very small in amount," meaning that the approximately 400 million to 450 million yuan in net profit for the quarter came almost entirely from the core business.
The company also specifically noted that the non-GAAP net profit metric "more effectively reflects the company's operating performance," a statement that to some extent proactively addresses market concerns about non-recurring items and demonstrates management's emphasis on earnings transparency.
Growth Sustainability: Positive Trend Signals, But Risks Cannot Be Ignored
From a trend perspective, the company has shown accelerating growth for multiple consecutive quarters, and the judgment of strong CW product demand aligns with the industry-level AI computing investment cycle, providing solid near-term support for business momentum.
However, investors should also pay attention to potential risks. First, the earnings forecast data has not yet been audited by certified public accountants, and final figures are subject to the official third-quarter report; second, the current high growth rate partly benefits from the low-base effect, and as the base rises, future year-on-year growth rates will naturally moderate; third, data center capital expenditure is cyclical, and if the global AI investment pace adjusts, downstream transmission pressure should not be overlooked; fourth, the optical interconnect track continues to attract new competitors, and changes in the supply-side landscape warrant ongoing monitoring.
Overall, Yuanjie Technology's third-quarter earnings forecast conveys a strong signal of business momentum. The company is in an accelerated phase of earnings realization, and its first-mover advantage in CW laser chips along with the results of capacity expansion are gradually translating into hard numbers on its financial statements.
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