Hwatsing Technology Co. Ltd. A

Hwatsing Technology released its 2026 semi-annual report, achieving operating revenue of 2.643 billion yuan, up 35.58% year on year; net profit attributable to shareholders of the listed company was 563 million yuan, up 11.44% year on year. The performance growth was mainly due to the company's CMP equipment being applied in batches in advanced logic, advanced storage, advanced packaging and other fields, with market share and operating sales scale steadily increasing. The company's net profit in the second quarter was 316 million yuan, and net profit in the first quarter was 247 million yuan. Based on this calculation, net profit in the second quarter increased by 27% quarter on quarter.

Hwatsing Technology announced that as of July 31, 2026, the company had repurchased a total of 441,100 shares through centralized competitive trading, accounting for 0.0889% of its total share capital, with a total payment of 60.22 million yuan. The highest repurchase transaction price was 156.96 yuan per share, and the lowest was 127.30 yuan per share, both occurring before the completion of the 2025 annual equity distribution and not exceeding the pre-adjustment repurchase price cap. The company previously planned to use its own funds and over-raised funds to repurchase shares for equity incentives, employee stock ownership plans, or convertible bond conversion, with a total repurchase amount of no less than 50 million yuan and no more than 100 million yuan. The original repurchase price cap was 173.00 yuan per share, which was later adjusted to 123.38 yuan per share due to the equity distribution, effective from June 10, 2026.

After the recent sharp pullback in China's A-share tech sector, analysts point out that the underlying logic supporting the tech bull market remains intact, and the correction has instead provided more cost-effective positioning opportunities. They recommend focusing on dip-buying chances in optical communications, semiconductor equipment, and commercial aerospace. In optical communications, the computing power race driven by generative AI continues, with the peak shipment cycle for 800G products and the upgrade cycle to 1.6T approaching. Chinese manufacturers hold solid global competitive advantages. Eoptolink Technology expects first-half net profit attributable to shareholders of 7 billion to 8 billion yuan, up 77.56% to 102.93% year-on-year. Suzhou TFC Optical Communication expects first-half net profit attributable to shareholders of 1.124 billion to 1.304 billion yuan, up 25% to 45% year-on-year. Industrial Securities analyst Zhang Lin remains bullish on the sector and suggests paying attention to Zhongji Innolight, Eoptolink Technology, Suzhou TFC Optical Communication, and Sinopower Electronics. The semiconductor equipment industry maintains high prosperity. SEMI forecasts that global total sales of semiconductor manufacturing equipment will reach a record high of 165.9 billion US dollars in 2026, up 23.2% year-on-year. Ping An Securities analyst Yang Zhong recommends Naura Technology, Advanced Micro-Fabrication Equipment, Tuojing Technology, Hwatsing Technology, Skyverse, and Leadmicro. In the commercial aerospace sector, after valuation compression, policies continue to advance, rocket recovery technology matures, and launch costs decline. Zheshang Securities analyst Peng Lei believes China's commercial aerospace is poised to enter a rapid growth phase, with 2026 potentially becoming a dense year for recovery verification. Shanghai Hanxun, China Aerospace Times Electronics, ST Zhenlei, Chengchang Technology, Maxwell Technologies, and Sunway Communication are widely favored.