紫光股份 forecasts up to 123% net profit growth for H1 2026
紫光股份 has released its preliminary results for the first half of 2026, anticipating a parent company net profit increase of 83.5% to 122.9%. The company expects earnings between 1.91 and 2.32 billion yuan.
Chinese technology firm 紫光股份 has issued a robust earnings forecast for the first half of 2026. The company projects its net profit attributable to the parent company to grow between 83.5% and 122.9%, reaching 1.91 to 2.32 billion yuan (approximately $260-318 million USD). The announcement was made on July 10, 2026.
The company attributes the anticipated profit surge primarily to the booming demand for artificial intelligence (AI) computing power and the rapid growth within the information and communications technology (ICT) sector. 紫光股份 has capitalized on market opportunities in intelligent computing and domestic products, which has driven accelerated revenue growth and improved profit margins.
Additionally, the results are expected to benefit from significant one-time factors. The company will no longer incur interest expenses related to financial liabilities from the acquisition of a minority stake in New H3C. In late May 2026, 紫光股份 increased its ownership in New H3C from 81% to 87.98%, further bolstering the parent company's earnings. The firm estimates that non-recurring items will contribute positively by 250-350 million yuan, a reversal from a non-recurring loss of 77 million yuan in the same period last year.
While the forecast is preliminary, 紫光股份 anticipates continued benefits from the growing demand for AI capacity and the trend towards domestic solutions in the ICT space. More detailed financial data will be disclosed in the company's mid-year report for 2026. The company previously held an 81% stake in New H3C before the recent share transaction.