Jiangsu Zhongtian Technology (A): 2Q26 earnings +52–69% YoY, below BofAe but more optical & subsea gains in 2H

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Jiangsu Zhongtian Technology (A): 2Q26 earnings +52–69% YoY, below BofAe but more optical & subsea gains in 2H

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Jiangsu Zhongtian Technology (A)

2Q26 earnings +52–69% YoY, below BofAe

but more optical & subsea gains in 2H

Maintain Rating: BUY | PO: 73.30 CNY | Price: 42.85 CNY

2Q26 profit alert below BofAe, more 2H growth 14 July 2026

Zhongtian Technology (ZTT) announced positive profit alert today with 1H26 attributable Equity

net profit to reach RMB2.35–2.51bn, representing a YoY increase of 50–60%. This

implies 2Q26 net profit at RMB1.4-1.6bn (up +52-69% YoY), below our forecast at Gary Tsang >> Research Analyst

RMB1.8bn. Our check suggest some specialty optical fiber export may take longer time Merrill Lynch (Hong Kong)

to recognize revenue due to shipping timing, and the 3 major telecom contract volume +852gary.tsang@bofa.com3508 6825

(low price) was completed in 2Q, leading to more price gain from 3Q. Subsea cable and Charlotte Xia >>

grid investment segments both performed in line in 2Q, with subsea cable export likely Research Analyst

Merrill Lynch (Hong Kong)

driving more growth in 3Q. We maintain Buy on ZTT as we remain positive on the optical charlotte.xia@bofa.com

fiber upcycle and see recent selloff overdone with valuation down to <11x 2027E PE. Cissy Guan >>

Research Analyst

AI-driven optical fiber upcycle drives earnings growth Merrillcissy.guan@bofa.comLynch (Hong Kong)

In our call last month, ZTT expects the optical fiber upcycle to extend through at least

2028, with new capacity more to meet incremental demand rather than reversing tight

supply given lengthy ramp-up and qualification cycles. Meanwhile, a higher specialty

Stock Datafiber mix and more potential AIDC orders will drive margin upside (see our report). The