Yuanjie Semiconductor Technology: Strong 1H26 profit alert reaffirms secular optical market trend Quick Note

Research evidence excerpt

Yuanjie Semiconductor Technology: Strong 1H26 profit alert reaffirms secular optical market trend Quick Note

Global Markets Research

Yuanjie Semiconductor Technology 688498.SS 688498 CH 21 July 2026

EQUITY: TECHNOLOGY

RatingStrong 1H26 profit alert reaffirms secular optical market trend Remains Neutral

Target price CNY 1,655.00 RemainsQuick Note

Closing priceYuanjie reported a positive profit alert on 21 July after market close and management 21 July 2026 CNY 1,510.00

hosted an analyst briefing call on the same day. The company guided to 1H26E revenue

and earnings of CNY900-950mn (+339.1-363.5% y-y) and CNY600-650mn (+1,196.9-

1,305.0% y-y), respectively. The 1H26E revenue/earnings guidance translates into 2Q26E Research Analysts

revenue of CNY545-595mn (+352-393% y-y) and earnings of CNY421-471mn (+1,217- China Technology1,373% y-y). We believe the significant uptick shows strong demand for its optical laser

Bing Duan - NIHKchips from the AIDC market. We note Yuanjie’s stock price has dropped around 16% in bing.duan1@nomura.com

the past week (vs Shanghai Sci-Tech Innovation Board 50 Index down 14%), likely due to +852 2252 2141

the market concerns about the rich valuation, slower product upgrade, as well as curbed

Donnie Teng - NIHKpricing power on faster capacity expansion in the optical chip sector. We think the strong donnie.teng@nomura.com

profit alert reaffirms the sustainability of demand upcycle of optical laser chips, driven by +852 2252 1439

continuous strong demand from high-end 800G / 1.6T optical transceivers. We maintain

Neutral and TP of CNY1,655, based on 65x FY28F EPS of CNY25.47.

Margin expansion driven by product upgrade in both telecom and datacom market;

concerns about oversupply and price decline might be overdone