On August 27, 2026, Moon Environment Technology Co.,Ltd. (000811) announced that it conducted a roadshow that day, attended by representatives from Yinhua Fund, Zhongou Fund, CCB Fund, and Changjiang Securities.
During the event, the company addressed several key questions from investors. Regarding overall operating performance for the first half of 2026, the company reported revenue of RMB 3.678 billion, representing a year-on-year increase of 17.96%. Net profit attributable to shareholders reached RMB 311 million, up 17.01% year-on-year. Due to exchange rate fluctuations, the company recorded a foreign exchange loss exceeding RMB 61 million in the first half. Excluding this non-operating factor, attributable net profit would have been approximately RMB 370 million, representing a year-on-year growth of about 40%, indicating a stable overall operating trend.
When asked about the core drivers of growth in the first half, management identified overseas operations as the primary pillar. The wholly-owned subsidiary Moon Environment Hong Kong generated revenue of RMB 1.67 billion in the first half, a 40% increase year-on-year, with net profit of RMB 206 million, up 27.16% from the prior year. The main operating entity under Moon Environment Hong Kong is its subsidiary Dunham-Bush. The data center chiller business progressed smoothly, with revenue recognition totaling approximately RMB 800 million in the first half, a 43% increase year-on-year. This business segment has now grown to represent 22% of total company revenue and has become a primary growth driver. Meanwhile, the sustained high level of data center construction activity in North America has effectively supported profitability for related products.
Regarding the barriers to entry in the North American data center liquid cooling equipment market, the company explained that market entry conditions are quite demanding, with barriers stemming from three main aspects. First, UL/ETL certifications require significant time investment and impose stringent requirements on product power consumption and performance. Second, North American customers prefer well-established local brands with long histories in large and medium-sized precision machinery. Dunham-Bush benefits from its North American legal entity status and over a century of operations, having built deep product reputation and channel advantages in the region, including recognition from the American Air-Conditioning, Heating, and Refrigeration Institute (AHRI) for product performance. Third, Chinese products exported to the United States face substantial tariffs. The competitive landscape of the North American data center HVAC supply chain is essentially solidified. The primary-side cooling equipment configuration for data centers must account for both internal heat generation and external climate conditions, making these non-standard customized products that require months of deep collaborative research, development, and testing between suppliers and customers. A vendor's technical flexibility and adaptability are also critical factors.
Addressing capacity constraints, the company stated that under significant order delivery pressure, it has initiated a systematic expansion plan featuring coordinated production capacity across three locations: Yantai, China, Malaysia, and North America. In North America, the company is adopting a leased factory model, while in Malaysia it is pursuing a newly constructed facility approach.
Moon Environment Technology Co.,Ltd. specializes in low-temperature refrigeration equipment, central air conditioning equipment, energy-saving heating equipment, energy and chemical compression/liquefaction equipment, precision castings, intelligent warehousing equipment, and hydrogen energy equipment. According to the company's 2026 interim report, first-half main business revenue was RMB 3.678 billion, up 17.96% year-on-year. Attributable net profit was RMB 311 million, up 17.01%, while non-GAAP net profit reached RMB 274 million, up 12.79%. In the second quarter of 2026 alone, quarterly main business revenue was RMB 2.054 billion, up 17.68% year-on-year. Quarterly attributable net profit was RMB 194 million, up 12.62%, and quarterly non-GAAP net profit was RMB 175 million, up 9.49%. The debt-to-asset ratio stood at 47.89%, with investment income of RMB 43.0771 million, financial expenses of RMB 54.8621 million, and a gross margin of 25.9%. Over the past 90 days, 11 institutions have issued ratings for the stock, including 10 buy ratings and 1 outperform rating, with an average target price of RMB 50.7 over that period. Margin trading data shows net financing outflows of RMB 105 million over the past three months, with reduced financing balances, while securities lending saw net inflows of RMB 2.0103 million, with increased securities lending balances.
Comments