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

Securities Times reporter Kang Yin

Dongshan Precision (002384) released an earnings forecast on April 7, 2026, expecting that in Q1 2026 the net profit attributable to the parent company will be RMB 1.0 billion—RMB 1.15 billion, a year-on-year increase of 119.36%—152.27%.

Dongshan Precision said that in Q1 2026, the company’s traditional businesses maintained steady growth. Shipments of printed circuit boards, precision components, and optical/electro modules for industries including consumer electronics, automobiles, and communications remained stable. Strong demand for AI computing power drove accelerated investment in AI infrastructure. Sours’ optical module products have been continuously introduced to new major customers, becoming the company’s new core profit growth driver. During the reporting period, the company actively empowered Sours and GMD, especially in Sours’ capacity expansion. It fully leveraged the group’s resource synergy in areas such as capital, talent, technology, and customers, helping Sours achieve a significant increase in revenue and profit. In the first quarter, FX rates and fluctuations in commodity prices impacted the realization of the company’s profits to some extent.

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 such as consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, and medical devices.

The earnings fast report disclosed on the same day shows that in 2025, Dongshan Precision achieved operating revenue of RMB 40.13B, a year-on-year increase of 9.12%; it achieved net profit of RMB 1.33B, a year-on-year increase of 22.43%.

Dongshan Precision said that in 2025, the company continued to solidify its traditional business base and maintained steady growth in businesses including 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 the customer base for its automobile business. In addition, the company strategically moved into the optical module (including optical chips) segment, laying a solid foundation for its AI data center-related businesses in 2026.

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

It is understood that, relying on its ongoing M&A integration strategy, Dongshan Precision is accelerating its transformation and upgrade from traditional electronics manufacturing to becoming a core supplier of AI computing power infrastructure. Dongwu Securities pointed out that in 2025 Dongshan Precision acquired Sours’ optical business to enter the high-speed optical communication segment, establishing a “AI server PCB + high-speed optical modules” dual-technology foundation. The surge in AI computing power has driven optical module industry into a phase of rapid growth. As a scarce target with optical chip in-house R&D capabilities, Sours has become the core engine of the company’s second growth curve.

Dongwu Securities believes that, unlike pure module packaging manufacturers, Sours has achieved an end-to-end layout from EML optical chip design to module integration. On the basis of accelerating commercial deployment of 1.6T products on top of mass deliveries at 800G, it fully benefited from the evolution of data center transmission speeds. Its self-developed chip capabilities not only ensure supply chain stability, but also enable cost and yield optimization through chip-module coordinated design, with profitability significantly higher than the industry average.