Yingliu (603308.SS): 2Q26 Preview: Slight capacity expansion in June with more to come in 2H26, with long-term agreements extended; Buy

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Yingliu (603308.SS): 2Q26 Preview: Slight capacity expansion in June with more to come in 2H26, with long-term agreements extended; Buy

Equity Research

21 July 2026 | 10:40AM CST

Yingliu (603308.SS): 2Q26 Preview: Slight capacity expansion in June

with more to come in 2H26, with long-term agreements extended; Buy

We revise our 2026-30E EPS forecasts down by c.10-11%, mainly reflecting an Zhou Li

+86(21)2401-8648 |

updated revenue ramp based on the company’s latest capacity-expansion schedule, zhou.li@goldmansachs.cn

Goldman Sachs (China) Securities

as well as more limited pricing actions as management prioritizes volume growth and Company Limited

strategic market-share gains. Jacqueline Du

+852-2978-1783 |

jacqueline.du@gs.com

Previewing 2Q26 earnings, we forecast 2Q26 revenue of Rmb916mn, up 27% yoy. Goldman Sachs (Asia) L.L.C.

With gross margin recovering modestly to 34.5% from 33.7% in 1Q26, we expect net Hao Chen

profit of Rmb118mn, up 23% yoy. +86(21)2401-8812hao.z.chen@goldmansachs.cn|

Company Limited

In our view, the key market debate has shifted away from Yingliu’s company-specific

execution toward the sustainability of global gas-turbine order growth. We maintain

our Buy rating following the recent correction. The stock is trading at 38.6x 12-m

forward P/E, with approximately 20% downside to its historical trough multiple of

30x but materially greater upside with visibility extending to 2028-29 and beyond

(our target multiple implies 88% upside), should hyperscalers provide better visibility

on data center capex. Remain Buy with new 12-m TP at Rmb82.4.

2Q26 and 2H26 preview: Additional capacity to ramp in 2H26

We expect Yingliu’s two-engine business (gas turbine and aero-engine) to

generate approximately Rmb420mn of production value in 2Q26, based on