Tungsten carbide continues to rise sharply, Okexy expects net profit in Q1 2026 to increase by 172 million to 212 million yuan year-on-year.

On March 27, OK Group (688308.SH) announced its earnings forecast for the first quarter of 2026, expecting a net profit attributable to the owners of the parent company to be between 180 million and 220 million yuan, an increase of 172 million to 212 million yuan compared to the same period last year; it is expected that the net profit attributable to the owners of the parent company, excluding non-recurring gains and losses, will be between 175 million and 215 million yuan, an increase of 174 million to 214 million yuan compared to the same period last year. In the same period last year, the company’s total profit was 3.6445 million yuan, with a net profit attributable to the owners of the parent company of 766.32 thousand yuan, and a net profit attributable to the owners of the parent company, excluding non-recurring gains and losses, of 126.48 thousand yuan, with earnings per share of 0.05 yuan.

The announcement stated that the main reason for this period’s performance change is the significant increase in the main raw material tungsten carbide for hard alloy tools. The company benefits from financial advantages and economies of scale, achieving a simultaneous increase in both product quantity and price. Additionally, the capacity utilization rates of the CNC blade and CNC tool industrial park projects have continued to rise, leading to corresponding price increases for products, resulting in improved gross and net profit margins year-on-year, thus enhancing the company’s profitability. Furthermore, the performance base for the first quarter of 2025 was relatively low, which accounts for the significant year-on-year growth.