Optical Communication Theme Strategy: [Shijia Photon (688313)] Q2 Profit Approaching RMB 200M, Results Significantly Beat Expectations, Focus on Fundamental Recovery After Oversold

English summary

Shijia Photon achieved net profit attributable to shareholders of RMB 315 million in H1 2026, up 45.30% YoY. Breaking it down, Q1 attributable net profit was about RMB 116 million, implying Q2 attributable net profit of about RMB 199 million, up ~61% YoY and ~71% QoQ. Against the backdrop of the market refocusing on earnings certainty, we believe the profit acceleration and product mix upgrade in the interim report will help gradually repair earlier pessimistic expectations, mainly reflected in: 1. #Q2 results clearly exceeded market expectations. The market previously expected Q2 profit mainly in the RMB 150-170 million range, but actual came close to RMB 200 million, already in the strong beat zone. More importantly, this growth did not rely on a low base, but rather a significant QoQ increase, showing that the ramp-up of high-speed optical communication products, improved capacity utilization, and product structure optimization are jointly driving profit release. · If the non-recurring deducted net profit is close to attributable net profit, then the quality of main business in this performance is relatively high. …