【Changjiang Electric New】Ping An Electric 2026 Semi-Annual Report Review: Main business stable with progress, electronic fabric + Thailand base open new growth pole, continue to recommend!

English summary

Event: The company released its 2026 semi-annual report. 2026H1 revenue was RMB 686 million, +20.27% YoY; net profit attributable to parent was RMB 125 million, -7.81% YoY; non-GAAP net profit was RMB 121 million, -6.35% YoY. Split to 26Q2, revenue was RMB 373 million, +19.94% YoY; net profit attributable to parent was RMB 70 million, -15.71% YoY; non-GAAP net profit was RMB 66 million, -14.47% YoY. 1. Main business performed steadily, with external environment causing phased earnings fluctuations. H1 revenue +20%, profit -7.8% YoY, mainly due to US-Iran conflict, raw material price increases, and exchange rate fluctuations. Export tax rebate impact of RMB 3-4 million, exchange rate impact of about RMB 17 million, and the company prudently made a provision of RMB 4 million. R&D investment increased by RMB 5 million quarter-on-quarter. After adjustment, profit growth is 20%+. This year is still expected to maintain growth of over 10%. Mandatory new national standards boost demand for high-end products, and further profit improvement through adjusting product structure and export ratio. ...