As A-shares continue their upward trajectory, investors must remain vigilant during the late April earnings season—a single misstep could lead to significant losses. While some companies like liquid cooling leader Yinwo Technology suffered dramatic drops after disappointing results, others such as Yinbang Co., Ltd. demonstrated resilience through strong fundamentals, hitting new highs.
Amid hesitant market advances, the Shanghai Composite Index has quietly surpassed the 4100-point mark. However, beneath surface gains, nearly half of all stocks declined in recent trading sessions. This divergence stems from the concentrated release of first-quarter reports due by April 30th. Historical precedents like O-film in 2019, CATL in 2022, and WuXi AppTec in 2023 show how earnings misses can trigger severe selloffs during this period.
This year's earnings season has been particularly brutal. Yinwo Technology opened with consecutive limit-down drops after reporting declining Q1 results, while Wen's Foodstuff Group and others faced heavy selling due to underwhelming performance. Conversely, companies like Xiangfenghua surged by the 20% daily limit on robust earnings, and Yinbang Co., Ltd. hit fresh highs with over 200% YoY net profit growth.
The collective earnings surge in optical chips, CCL, and PCB segments highlights truly high-growth sectors. Unlike the divided liquid cooling segment, all components in these niches posted YoY profit growth—a rarity across the A-share market. Zhongji Innolight, for instance, reported staggering Q1 revenue of 19.5 billion yuan (up 192.12% YoY) and net profit of 5.74 billion yuan (up 262.28% YoY). Though Tianfu Communication slightly missed expectations, it still achieved 45.79% profit growth, attributing performance to AI industry expansion and global data center construction.
Industry trends suggest sustained momentum for optical modules. Lightcounting projects global data center optical module markets will reach $22.8 billion by 2026 and $41.4 billion by 2030, with 800G and 1.6T modules comprising 64% of the market. Similar growth patterns appear in optical chips and PCB sectors—Shijia Photonics posted 32.18% revenue growth and 24.66% profit growth while announcing a 1.27-billion-yuan investment in high-speed optical chip projects.
These booming sectors have attracted not only retail investors but also the "National Team"—state-backed funds. By Q1 2026, entities including the National Social Security Fund appeared among the top-10 shareholders of 71 listed companies, with some stocks receiving concentrated backing from multiple state funds.
Dingtong Technology, a high-speed copper connection concept stock, exemplifies this trend. Three pension fund portfolios simultaneously appeared in its top shareholders list, with two initiating new positions and one increasing its stake by 233,400 shares. Numerous other tech-focused companies also secured heavy National Team positioning despite operating outside AI-related niches.
(Mentioned stocks are for analytical purposes only, not investment advice.)
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