Dongshan Precision's performance is expected to double by 2025 but still "underperform" institutional expectations, with net profit in the first quarter of 2026 expected to double year-on-year.

Ask AI · How does the optical module business drive a doubling of net profit in Q1 2026?

Daily Economic News Reporter: Cai Ding Daily Editor: Wei Wenyu

After market close on April 7, PCB (Printed Circuit Board) giant Dongshan Precision (SZ002384, stock price 109.01 yuan, market value 199.66B yuan) disclosed its 2025 performance quick report and Q1 2026 forecast.

The announcement shows that Dongshan Precision achieved approximately 40.13B yuan in revenue in 2025, a year-on-year increase of 9.12%; net profit attributable to shareholders of the parent about 1.33B yuan, up 22.43%; non-recurring net profit attributable to shareholders of the parent about 960 million yuan, up 6.80%; basic earnings per share 0.75 yuan, up 17.19%.

Image source: Dongshan Precision 2025 performance quick report

Dongshan Precision noted that the 2025 financial data are preliminary calculations and have not been audited by an accounting firm, so there may be differences from the final data disclosed in the annual report.

The “Daily Economic News” reporter (hereinafter “the reporter”) noticed that although Dongshan Precision’s revenue and net profit attributable to shareholders of the parent increased year-on-year in 2025, they still fell short of institutional expectations.

2025 Double Growth Still Below Institutional Expectations, Net Profit in Q4 Drops Nearly 80% Quarter-on-Quarter

Regarding the reasons for the 2025 performance growth, Dongshan Precision stated that in 2025, the company continued to stabilize its traditional business fundamentals, maintaining steady growth in PCB (including FPC), precision structural parts, and optoelectronic modules. During the year, it completed the acquisition of GMD in France, further expanding overseas layout and solidifying its customer base in the automotive sector. Additionally, the company strategically entered the optical module (including optical chip) sector, laying a solid foundation for its AI data center-related business in 2026.

Besides basic financial data, the performance quick report also shows that by the end of 2025, Dongshan Precision’s total assets increased by 30.89% year-on-year to about 60.23B yuan. The company stated that this was mainly due to the consolidation of GMD France and Sors Optoelectronics during the reporting period.

The reporter noted that although Dongshan Precision’s revenue and net profit attributable to shareholders of the parent achieved double growth in 2025, according to data compiled from Wind Financial Terminal, 12 institutions’ consensus forecasts for 2025 revenue and net profit attributable to shareholders of the parent were approximately 41.53B yuan and 1.93B yuan, respectively. Dongshan Precision’s disclosed 2025 revenue and net profit were respectively 3.38% and 31.18% lower than these consensus estimates.

Image source: Wind

Based on the data disclosed in the quick report, 2025 marked Dongshan Precision’s first time surpassing 40 billion yuan in annual revenue, achieving positive growth for the third consecutive year. Meanwhile, the approximately 1.33B yuan in net profit attributable to shareholders of the parent in 2025 allowed Dongshan Precision to rebound after two years of negative growth. However, its net profit in 2025 was still 43.88% lower than in 2022 (about 2.37B yuan).

Image source: Wind

According to Dongshan Precision’s 2025 third-quarter report, the net profit attributable to shareholders of the parent in the first three quarters was about 1.22B yuan. Therefore, using the full-year net profit estimate of about 1.33B yuan, the net profit in Q4 2025 would be approximately 106 million yuan, a quarter-on-quarter decline of about 77.2% from roughly 465 million yuan in Q3 2025.

Optical module volume increases, net profit in Q1 2026 expected to more than double, hitting a new quarterly high

Along with the disclosure of the 2025 performance quick report, Dongshan Precision also released its Q1 2026 earnings forecast.

The announcement shows that the company expects to achieve a net profit attributable to shareholders of 1 billion to 1.15 billion yuan in Q1 2026, a year-on-year increase of 119.36% to 152.27%; non-recurring net profit attributable to shareholders of 960 million to 1.08 billion yuan, up 141.97% to 172.21%; basic earnings per share of 0.55 to 0.63 yuan per share.

Dongshan Precision emphasized that the data related to this forecast are preliminary estimates by the company’s finance department and have not been audited by an accounting firm.

Image source: Dongshan Precision Q1 report forecast

Regarding the reasons for the significant year-on-year increase in Q1 2026 performance, Dongshan Precision stated that: first, traditional business maintained stable growth during the reporting period, with shipments of printed circuit boards, precision components, and optoelectronic modules in the consumer electronics, automotive, and communications industries remaining stable; second, strong demand for AI (artificial intelligence) computing power accelerated investment in AI infrastructure, with Sors’ optical module products continuously onboarding new major clients, becoming a new core profit growth point; third, the company actively empowered Sors and GMD during this period, especially in Sors’ expansion, fully leveraging the group’s resources in funding, talent, technology, and customers to significantly boost Sors’ revenue and profit.

At the same time, Dongshan Precision also stated that fluctuations in exchange rates and commodity prices in Q1 somewhat affected the company’s profit realization.

The reporter found that, from a vertical comparison, based on the lower limit of the Q1 2026 net profit forecast (1B yuan), this would be the first time Dongshan Precision’s net profit attributable to shareholders of the parent exceeded 1B yuan in a single quarter.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.

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