Yuanjie Semiconductor Technology Co.,Ltd. (SH: 688498) has maintained robust growth in the first half of this year, following a significant performance increase in the first quarter. The company disclosed a performance forecast on the 22nd, anticipating revenue between 9 billion and 9.5 billion yuan for the first half, representing a year-on-year increase of 339.13% to 363.53%. Net profit is projected to be between 6 billion and 6.5 billion yuan, marking a surge of 1,196.91% to 1,304.98% year-on-year. Adjusted net profit is expected to range from 5 billion to 5.5 billion yuan, growing by 1,001.87% to 1,112.06%.
Anticipated Doubling of Q2 Profit
Regarding the reasons for the substantial profit forecast, the company attributed it primarily to revenue growth in its data center business. As the proportion of data center business to the company's overall revenue increases, the overall gross profit margin has improved. Additionally, with the significant expansion of the company's revenue scale, the proportion of period expenses has declined. Furthermore, the company indirectly participates in equity investments through private equity funds. An increase in the valuation of companies invested in by these funds led to a fair value change in the private equity investments, indirectly generating certain investment gains for the company. This portion of investment gains is primarily classified as non-recurring gains and losses.
Yuanjie Semiconductor Technology Co.,Ltd.'s core business involves the research, development, design, production, and sales of optical chips. Its main products are optical chips, primarily used in telecommunications markets, data center markets, and automotive LiDAR markets, among others. In the first quarter of this year, the company achieved revenue of 355 million yuan, a net profit of 179 million yuan, and an adjusted net profit of 178 million yuan. Based on this calculation, the company is projected to achieve revenue between 545 million and 595 million yuan in the second quarter, representing a sequential increase of 54% to 68%. Net profit is estimated to be between 421 million and 471 million yuan, a sequential jump of 135% to 163%, while adjusted net profit is expected to range from 322 million to 372 million yuan, increasing by 81% to 109% quarter-on-quarter.
The company recently indicated on an investor interaction platform that the gross profit margin is influenced by various factors, including product mix. As the proportion of revenue from products in the artificial intelligence segment rises, the company's gross profit margin shows an upward trend. From a medium- to long-term perspective, the company will continue to increase investment in areas such as artificial intelligence within the data center field.
Significant Increase in Mutual Fund Holdings
On the 22nd, Yuanjie Semiconductor Technology Co.,Ltd.'s stock price rose rapidly after opening, briefly touching 1,611 yuan per share before fluctuating downward and closing at 1,415 yuan per share, a decline of 6.29%. The daily turnover was 11.363 billion yuan, with a turnover rate of 6.09%. Data shows that as of June 30th, institutional holdings of Yuanjie Semiconductor Technology Co.,Ltd. totaled 34.765 million shares, all held by funds, accounting for 28.29% of outstanding shares. This represents an increase of 4.83 percentage points from the 23.46% held at the end of the first quarter. Among these, 133 funds held it as their largest position, and another 82 funds held it as their second-largest position, indicating a strong willingness among mutual fund institutions to allocate to the stock.
Specifically, ChinaAMC SSE STAR Market 50 ETF holds 1.8188 million shares of Yuanjie Semiconductor Technology Co.,Ltd., while Harvest SSE STAR Market Chip ETF holds 1.5026 million shares.
An analyst from Galaxy Securities, Zhao Liangbi, believes the company's core revenue comes from the mass supply of its 70mW CW chips and batch delivery of 100mW chips, positioning it in the 800G/1.6T silicon photonics and CPO (Co-Packaged Optics) scenarios. Its 300mW chips have been sent for R&D sampling, targeting next-generation high-end demand. The company's 100G EML products have completed validation with leading clients and entered small-scale mass production. Its 200G EML products have completed R&D tape-out and are in the client validation stage, with mass production planned by the end of 2026, aiming to enter the 1.6T long-distance high-speed optical module market, competing with overseas counterparts.
The company employs a dual-strategy layout using silicon photonics CW for short-distance data communication and EML for long-distance high-speed applications. Leveraging its IDM (Integrated Device Manufacturer) model for capacity expansion and quality improvement, it has secured partnerships with leading clients, capturing domestic substitution demand arising from the supply-demand gap for overseas EML products. Against the backdrop of current supply-demand imbalances, as a leading domestic CW and EML manufacturer, the company possesses customer and technological advantages and is expected to achieve growth exceeding expectations in 2026. Furthermore, in 2027 and 2028, driven by optical module iteration, the rapid volume ramp-up of high-speed EML and high-power CW chips is anticipated to propel the company's performance to high-speed growth.
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