Hundsun (600570.SS): Refreshing Estimates Post Weak 1H26 Prelim Results; Double-Digit Order Growth Underpins 2H26 Recovery Outlook

研报英文原文证据摘录

Equity Research

11 August 2026 | 4:20PM HKT

Hundsun (600570.SS)

Refreshing Estimates Post Weak 1H26 Prelim Results; Double-Digit Order Growth

Underpins 2H26 Recovery Outlook

600570.SS

12m Price Target: Rmb32.71

Price: Rmb23.07

Upside: 41.8%

We are updating our forecasts for Hundsun, revising down our

2026-28E core revenue/gross profit/net profit by an average of

-7%/-7%/-5% vs. prior, to incorporates the weaker-than-expected

1H26 preliminary results, with operating revenue/attributable profit

-12%/+1% yoy and -11%/-41% below GSe. This is primarily due to

extended project cycles, which slowed revenue recognition.

Hundsun also announced a new employee equity incentive plan,

setting performance targets for 2026-2028 at a minimum of 10%

growth in attributable profit excluding non-recurring G/L (1H26: 9%

yoy), consistent with previous plans. Despite persistent short-term

pressures, we remain positive on Hundsun, underpinned by

double-digit contract order growth and active capital market. We

anticipate a revenue recovery in 2H26, with investment income

(particularly from Ant Fund Sales) expected to continue supporting

earnings. We maintain our Buy rating.

1H26 Preliminary Results: In 1H26, Hundsun reported operating

revenue of Rmb 2.1bn (-12% yoy/-11% vs GSe) and attributable

profit of Rmb 0.26bn (+1% yoy/-41% vs. GSe). Attributable profit

excluding non-recurring G/L stood at Rmb 0.21bn, growing 9% yoy.

This implies 2Q26 operating revenue of Rmb 1.2bn (-12% yoy/-17%

vs. GSe) and attributable profit of Rmb 0.12bn (-46% yoy/-59% vs.

GSe). Management attributed the revenue decline to extended

project cycles, which consequently slowed the pace of revenue

recognition. However, they emphasized that contract orders

achieved double-digit growth, laying a solid foundation for future

revenue growth. Furthermore, benefiting from a buoyant capital

market, investment income (including investments in Ant Fund

Sales) performed well in 1H26, thereby supporting positive profit

growth.

Equity Incentive Plan: Hundsun also unveiled its 2026 employee

equity incentive plan, continuing its practice of annual equity

incentive grants since 2022. This plan covers 13% of its employees,

BUY

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