Dongshan Precision expects a net profit increase of 119%–152% in the first quarter

Dongshan Precision (002384) released an earnings forecast on April 7, 2026, expecting attributable net profit of 1.0 billion to 1.15 billion yuan in Q1 2026, up 119.36% to 152.27%.

Dongshan Precision said that in Q1 2026, the company’s traditional businesses will maintain stable growth. Shipments of printed circuit boards, precision components, and optical/electro modules for industries including consumer electronics, automobiles, and communications will remain stable. Strong demand for AI compute power has driven accelerated investment in AI infrastructure. Sol’s optical module products have been continuously introduced to new major customers, becoming the company’s new core growth driver. During the reporting period, the company actively supported Sol and GMD, especially in Sol’s capacity expansion. It fully leveraged the group’s synergies in resources such as capital, talent, technology, and customers, helping Sol’s revenue and profits increase significantly; in the first quarter, fluctuations in exchange rates and commodity prices to some extent affected the realization of the company’s profits.

Dongshan Precision mainly engages in the R&D, production, and sales of electronic circuit products, precision components, touch display modules, LED display devices, and more. Its products are widely used in industries including consumer electronics, new energy vehicles, communications equipment, industrial equipment, AI, and medical devices.

The company’s earnings quick report disclosed on the same day shows that in 2025, Dongshan Precision (002384) achieved operating revenue of 40.13B yuan, up 9.12%; it achieved net profit of 1.33B yuan, up 22.43%.

Dongshan Precision said that in 2025, the company continued to stabilize its “basic plate” of traditional businesses and maintained steady growth in businesses such as PCB (including FPC), precision structural parts, and optical/electro modules. During 2025, it completed the acquisition of the French GMD company, further expanding its overseas footprint and strengthening its customer base in the automotive business. In addition, the company strategically entered the optical module segment (including optical chips), laying a solid foundation for the company’s related businesses in AI data centers in 2026.

By the end of 2025, Dongshan Precision’s total assets increased by 30.89% compared with the beginning of the year, mainly due to the company consolidating the French GMD company and Sol’s optical business during the reporting period.

It is understood that relying on a continuous M&A integration strategy, Dongshan Precision is accelerating its transformation and upgrade from traditional electronics manufacturing to becoming a core supplier for AI compute infrastructure. Soochow Securities (601555) said that in 2025, Dongshan Precision acquired Sol to enter the high-speed optical communications track and built a “AI server PCB + high-speed optical modules” dual-technology cornerstone. The breakout in AI compute power has driven the optical module industry into a phase of high-speed growth. Sol’s position as a scarce target with optical chip self-developed capability has become the core engine of the company’s second growth curve.

Soochow Securities believes that, unlike pure module packaging manufacturers, Sol has implemented an end-to-end layout from EML optical chip design to module integration. Building on batch deliveries of 800G, it is accelerating the commercialization of 1.6T products, fully benefiting from data center rate iterations. Its self-developed chip capabilities not only ensure supply chain stability, but also optimize cost and yield through chip–module co-design, with profitability significantly better than the industry average.

(Editor: Zhang Yan)

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