Luxshare Precision Projects 18%-22% Net Profit Growth in First Half

Earnings Forecast: Net Profit Could Exceed RMB 8.1 Billion

In mid-July, Luxshare Precision — a leading A-share company in consumer electronics and precision manufacturing — released its H1 2026 earnings forecast. According to the announcement, the company expects net profit attributable to shareholders of the listed company to reach RMB 7.84 billion to RMB 8.106 billion for the first half of 2026, representing a year-on-year increase of 18% to 22%.

This growth trajectory continues Luxshare Precision's steady upward momentum in recent years and once again validates market expectations regarding its core position in the AI hardware supply chain.

AI Hardware Demand Becomes Core Growth Engine

Luxshare Precision's earnings growth is closely tied to the continued surge in global AI infrastructure development. As a major supplier of critical components such as high-speed connectors, optical module assemblies, and server thermal management modules, the company has benefited significantly from the rapid increase in AI server shipments.

Since 2024, global tech giants have continued to ramp up investments in AI computing power. Strong GPU demand from chipmakers like NVIDIA and AMD has directly driven order growth for upstream precision components. Leveraging its technical expertise in high-speed interconnects and precision assembly, Luxshare Precision has successfully entered the AI server supply chains of multiple leading cloud vendors, securing substantial incremental orders.

Meanwhile, the company's traditional strengths in consumer electronics have also maintained stable contributions. Product iteration cycles from major clients such as Apple provide sustained revenue support, while the accelerating integration of AI capabilities in consumer devices has generated new upgrade demand for related precision components.

Industry Landscape and Competitive Advantages

Within the AI industry chain, the competitive landscape in precision manufacturing is undergoing profound changes. Compared to the "red ocean" competition in traditional consumer electronics contract manufacturing, AI server and data center-related businesses feature higher technical barriers and stronger customer stickiness, creating more favorable profit margins for leading manufacturers with strong technical capabilities.

Luxshare Precision's core competitive strengths are reflected in three areas: first, cross-category precision manufacturing capabilities spanning connectors, acoustics, optics, and other technology domains; second, long-term partnerships established with top-tier global clients, ensuring order stability; and third, sustained R&D investment that enables the company to rapidly respond to new technological demands in the AI era, such as high-speed transmission and high-density interconnection.

Outlook: AI Dividends Expected to Continue

Looking ahead to the second half of 2026 and beyond, Luxshare Precision's growth thesis remains clear. Global AI computing infrastructure is still in a phase of rapid expansion, with no signs of slowdown in capital expenditure plans from major cloud service providers. Additionally, rising penetration rates of AI PCs, AI smartphones, and other terminal products are expected to inject new vitality into the company's consumer electronics business.

However, the market should also be mindful of potential risk factors, including uncertainties in the international trade environment, raw material price fluctuations, and intensifying industry competition. Overall, Luxshare Precision's earnings forecast sends a positive signal, reflecting the prosperity transmission effect across the entire AI industry chain — from chips to hardware manufacturing.