First Read Kehua Data: 1H26 core earnings slightly missed; but recovery expected in 2H26

Research evidence excerpt

First Read Kehua Data: 1H26 core earnings slightly missed; but recovery expected in 2H26

Forecast returns

Forecast price appreciation 37.3%

Forecast dividend yield 1.7%

Forecast stock return 39.0%

Market return assumption 6.8%

Forecast excess return 32.2%

Company Description

Established in 1988, Kehua Data started out manufacturing Uninterruptible Power Supply

(UPS) products in Fujian province. It has since grown into a multi-business company engaged

in UPS, solar and energy storage inverter manufacturing, and an internet data centre (IDC)

operating service. It was listed on the Shenzhen Stock Exchange in 2010. Kehua has

expanded its sales network to 30+ countries, and developed strong long-term relationships

with core customers, including tier-1 hyperscalers for its UPS products, and supplies

renewables products to leading renewable project developers.

Valuation Method and Risk Statement

Our price target for Kehua is based on a DCF methodology.

Downside risks include:1) slower-than-expected IDC capacity expansion, which drags the

growth of overall data center product; 2) lower-than-expected entrance to overseas

hyperscaler supply chain due to long customer verification cycle; 3) lower-than-expected

overseas shipments of ESS product; and 4) new entrants taking Kehua's market share.

Upside risks include: 1) faster-than-expected IDC capacity expansion, which accelerates the

growth of overall data center product; 2) higher-than-expected entrance to overseas

hyperscaler supply chain due to shortened customer verification cycle; 3) higher-than-

expected overseas shipment of ESS products; 4) share gains due to Kehua's strong

relationships with hyperscalers.

First Read: Kehua Data 14 July 2026 abc 2