Dongshan Precision's performance is not meeting institutional expectations for 2025's double growth; net profit in the first quarter of 2026 is expected to more than double.

A leading company in the PCB industry, Dongshan Precision (SZ002384), recently released its 2025 performance quick report and a 2026 first-quarter earnings forecast, showing that the company’s revenue has broken through the 40 billion yuan mark for the first time, but full-year net profit did not meet market expectations. According to the announcement, in 2025, the company achieved operating revenue of 40.125 billion yuan, up 9.12% year on year; net profit attributable to shareholders of the parent company was 1.329 billion yuan, up 22.43% year on year. After excluding non-recurring items, net profit was 960 million yuan, up 6.80%. Although revenue and profit both grew, compared with the forecasts of 12 institutions predicting 41.527 billion yuan in revenue and 1.931 billion yuan in net profit, the actual figures were 3.38% and 31.18% lower, respectively.

Financial data shows that Dongshan Precision’s net profit in Q4 2025 was weak. Net profit attributable to the parent company had already reached 1.223 billion yuan in the first three quarters; extrapolating for the full year, Q4 alone achieved only 106 million yuan, a sharp quarter-on-quarter drop of 77.2% from 465 million yuan in Q3. The company explained that its annual performance growth was mainly driven by the steady development of its traditional PCB business (including FPC), precision structural components, and optoelectronic module products, as well as the completion of the acquisition of the French GMD company, which strengthened its customer base in the automotive business. In terms of strategic layout, the optical module business has become a new highlight, laying the foundation for the 2026 AI data center business. In terms of asset scale, total assets increased by 30.89% year on year to 60.228 billion yuan, mainly due to the financial impact of consolidating the French GMD and Sores Optoelectronics.

Compared with historical data, 2025 became a milestone year for Dongshan Precision’s revenue, but net profit still has not returned to the 2022 level. In that year, net profit attributable to the parent company was 2.368 billion yuan, which was 43.88% lower than in 2025. However, the company ended a two-year stretch of negative net profit growth, indicating that its operating conditions are gradually improving. Of note, the growth rate of non-recurring net profit in 2025 (6.80%) is significantly lower than the growth rate of net profit attributable to the parent (22.43%), reflecting that the impact of non-recurring items on the profit statement has expanded to some extent.

Along with the release of its annual data, Dongshan Precision also provided a strong earnings forecast for 2026’s first quarter. It is expected to achieve net profit attributable to the parent of 1.0 billion to 1.15 billion yuan, up 119.36% to 152.27% year on year; non-recurring net profit of 960 million to 1.08 billion yuan, an increase of 141.97% to 172.21%. If calculated based on the lower end of the forecast, this would be the company’s first quarter in which net profit exceeds 1.0 billion yuan. The performance increase is mainly attributable to: stable shipment volumes from traditional businesses in consumer electronics, automotive, and communications; the surge in demand for AI computing power driving Sores optoelectronic module products to be introduced to new customers; and group resource synergy supporting Sores’ expansion and efficiency improvements. The company also noted that exchange rate fluctuations and changes in commodity prices may have some impact on profits.

In terms of business layout, Dongshan Precision is accelerating its transformation toward high value-added areas. By acquiring the French GMD, it strengthens its automotive electronics layout; its strategic investment in Sores Optoelectronics allows it to enter the optical module track, forming a “PCB + precision components + optoelectronic modules + optical communications” multi-engine driving model. The sharp increase in assets by 30.89% in 2025 reflects the continued progress of its M&A strategy. Of note, the company specifically emphasized that the optical module business has become a new core profit growth point, which aligns with the performance growth in the 2026 first-quarter forecast, indicating that the strategic transformation has begun to show results.