Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384)

Individual Stock Analysis Report | Industry: Electronic Circuits / Optical Modules / Precision Manufacturing | Report Date: September 13, 2026 | Data as of the close on September 11, 2026; technical indicators are daily, unadjusted. Shareholder data as of June 30, 2026, subject to quarterly lag.

This report was automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

I. Core Summary

The core change in Dongshan Precision's latest results is that the profit driver is gradually shifting from traditional electronic circuits to optical modules: In the first half of 2026, operating revenue was RMB 27.798 billion, up approximately 63.95% year-on-year; net profit attributable to shareholders of the parent company was RMB 2.957 billion, up 290.09% year-on-year; and net profit attributable to shareholders of the parent company after deducting non-recurring items was RMB 2.480 billion, up approximately 277.5% year-on-year. Of this, optical module revenue was RMB 5.351 billion, accounting for 19.25%, with a gross margin of 39.33%, significantly higher than the segment gross margins of electronic circuits at 18.80%, precision components at 12.13%, and optoelectronic display modules at 5.89%. After consolidating Source Photonics in 2025, the company's business structure and profit margins have improved markedly.

The company's traditional businesses remain based on electronic circuits, precision components, and display modules. In the first half of 2026, electronic circuit revenue was RMB 12.53 billion, accounting for 45.07%, and export revenue was RMB 23.13 billion, accounting for 83.20%. The long-term growth logic mainly comes from optical module and optical chip capacity expansion, electronic circuit capacity expansion, demand for new energy vehicle precision components, and the layout of diversified intelligent interconnect solutions; the company has raised the total investment in expansion projects of Source Photonics and related subsidiaries from USD 1.2 billion to USD 1.7 billion.

The company's growth also has strong characteristics of customer concentration and reliance on M&A. In 2025, the top five customers accounted for 64.33% of sales, with the largest customer accounting for 46.46%; although the optical module business has a relatively high gross margin, the high profit growth in the first half of 2026 clearly depended on its volume ramp-up. The company's closing price on September 11, 2026 was RMB 194.42, with a TTM dynamic P/E ratio of approximately 99.33x and a P/B ratio of approximately 14.61x. Technically, the share price is slightly below MA20 and the Bollinger middle band. In the recent ten trading days, main funds recorded a cumulative net outflow of approximately RMB 457 million, and the market holds considerable disagreement over sustained high growth and valuation digestion.

II. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Layout

• Electronic circuits: flexible boards/rigid boards/rigid-flex boards (PCB, FPC, HDI, FPCA)
• Optical modules (including optical chips): from Source Photonics, acquired in 2025
• Precision components: automotive parts, communications equipment components (antennas, filter structural parts), liquid cooling plates, etc.
• Optoelectronic display modules: touch panels, LCD/OLED modules, LED display devices

2.3 Industry Chain Position and Cost-Profit Structure

Dongshan Precision's core business model is "customized contract manufacturing for major customers," with extremely high downstream customer concentration (the top five customers together accounted for 64.33% in 2025, with the largest customer accounting for 46.46%). Upstream raw materials include integrated circuit chips, copper-clad laminates, electronic components, etc., and procurement concentration is relatively dispersed (the top five suppliers together accounted for 21.87% in 2025). The 2025 acquisition of Source Photonics brought the company into the optical module track and delivered structural gross margin improvement. The optical module business achieved a gross margin of 39.33% in 2026H1 and is the core driver of the current margin improvement.

• The company's actual main raw materials (according to the procurement model disclosed in the 2025 annual report/2026 interim report): integrated circuit chips, electronic components, connectors, display devices, copper-clad laminates, die-cast parts, wafers, aluminum materials, etc., with many categories and large procurement scale.
• Supplier concentration: The 2025 annual report disclosed that the total procurement amount from the top five suppliers accounted for 21.87% of total annual procurement. Breakdown (Components of operating costs in the English version of the annual report reposted by Sina Finance): Top1 RMB 1.4638 billion (5.58%), Top2 RMB 1.3242 billion (5.05%), Top3 RMB 1.1013 billion (4.20%), Top4 RMB 1.0743 billion (4.09%), Top5 RMB 773.9 million (2.95%). This breakdown comes from a single source and could not be cross-verified against the itemized breakdown in the original Chinese annual report; the latest annual report should prevail.
• Assessment of bargaining power: The company is a "partial price taker" upstream — copper-clad laminates, chips, aluminum materials, and others are industry-wide commodities/general materials whose prices move with the market; the company suppresses costs through centralized group procurement, scale synergies, and long-term agreements with core suppliers. However, the customized nature of its business with customers (suppliers must be certified by the company or the customer, and substitute materials require customer approval) means its degree of freedom in procurement decisions is constrained by downstream customers.
• Extremely high customer concentration is the most core structural feature of this company (consistent across multiple sources): the top five customers together accounted for 64.33% of sales in 2025 (annual report basis); the Hong Kong Stock Exchange listing document basis is "64.4%," with the largest customer (Customer A) accounting for 46.5%, while the annual report basis shows the largest customer accounting for 46.46%. The small difference between the two bases is within 0.1 percentage point and is due to rounding.
• Historical customer concentration series (third-party statistics, single source, annual report verification recommended): 2022 66.8% (Customer A 51.6%), 2023 73.5% (55.8%), 2024 71% (51.3%), 2025 64.33% (46.46%).
• Customer A is widely recognized by the market as Apple Inc., but the annual report does not directly name it; this is market consensus rather than company disclosure.
• Customer structure description (HKEX prospectus/media reports): customers include four of the world's top five consumer electronics brand manufacturers, the world's top five pure electric vehicle manufacturers, and four of the world's top five cloud service providers. Source Photonics customers are mentioned as including Microsoft, Amazon, Huawei, and Alibaba.
• Bargaining dynamics: This is a typical "customized contract manufacturing for major customers" structure — FPC/PCB suppliers expand part numbers and supply on demand around leading customers such as Apple, and the industry has historically been constrained by "annual price reduction" pressure, with pricing and part-number share led by customers; precision components (new energy vehicle structural parts) are also relatively weak versus vehicle manufacturers; optical modules (data center customers) are currently in a stage of supply shortage, with relatively stronger bargaining position, and are the main source of gross margin improvement.
• Sales model: Direct sales to enterprise customers; after system certification, customers purchase directly, with group sales synergies and major-customer service teams.
• This search did not obtain specific account data such as accounts receivable/net profit ratio, accounts receivable turnover days, prepayments/accounts payable, so quantitative evidence cannot be provided. Methodologically, this should be supplemented with the "accounts receivable" and "accounts payable" notes in the 2025 annual report and the working capital chapter of the HKEX prospectus. No qualitative inference is made here in order to avoid unsupported conclusions.
• Downstream customer concentration: the top five customers together accounted for 64.33% of sales in 2025 (annual report basis; data source year is 2025); the HKEX listing document basis is "64.4%," with the largest customer accounting for 46.5%. Historical series (third-party statistics, single source, annual report verification recommended): 2022 66.8%, 2023 73.5%, 2024 71%, 2025 64.33%. Customer A is widely recognized by the market as Apple Inc., but the annual report does not directly name it; this is market consensus rather than company disclosure. Upstream supplier concentration: the total procurement amount from the top five suppliers in 2025 accounted for 21.87% of total annual procurement; the itemized data comes from a single source and could not be cross-verified against the original Chinese annual report, so the latest annual report should prevail.

Dongshan Precision is generally positioned in the middle-left part of the smile curve — in the precision manufacturing contract manufacturing segment centered on electronic circuits (FPC/PCB), with gross margin of approximately 15%-19%, belonging to the midstream processing and assembly segment, with profits constrained by annual price reduction pressure from major customers; however, through the 2025 acquisition of Source Photonics, it entered the optical module (including optical chip) field, where gross margin reaches 36%-39%, extending the company toward the left end of the smile curve (high value-added core components). The core drivers of future margin improvement lie in: the structural improvement brought by the continuously rising share of the optical module business (from 3.58% in 2025 to 19.25% in 2026H1), the building of in-house optical chip capabilities, and the scale effect of precision components in the new energy vehicle field.

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

2024 net profit after deducting non-recurring items was RMB 899 million (-44.34%), basic EPS RMB 0.64, weighted ROE 5.89%, gross margin approximately 14.0%; the sharp profit decline was mainly due to LED business optimization, resulting in RMB 164 million in asset disposal losses and RMB 595 million in asset impairment losses. Another source for 2024 showed net profit attributable to shareholders of the parent company of RMB 1.089 billion and revenue growth of 9.33%. The 2025 earnings express showed net profit attributable to shareholders of the parent company of RMB 1.329 billion (+22.43%), net profit after deducting non-recurring items of RMB 960 million (+6.80%), and EPS RMB 0.75; the final annual report showed net profit attributable to shareholders of the parent company of RMB 1.386 billion (+27.67%), EPS RMB 0.79 (+23.44%), and net cash flow from operating activities of RMB 5.307 billion (+6.44%); 2025 Q4 single-quarter net profit attributable to shareholders of the parent company was RMB 163 million (Q3 was RMB 465 million, QoQ approximately -65%), below the analyst consensus of RMB 535 million. There is a difference between the 2025 earnings express and the final annual report (net profit attributable to shareholders of the parent company difference of approximately RMB 57 million, EPS 0.75 vs 0.79); the express was unaudited and the annual report should prevail. The 2026 Q1 report showed net profit after deducting non-recurring items of RMB 1.059 billion (+166.99%), gross margin 19.33% (+5.19pct), and net margin 8.56%. The 2026 interim report showed net profit after deducting non-recurring items of RMB 2.48 billion (+277.5%), gross margin 20.2%, and net margin 10.7%; Q2 single-quarter revenue was RMB 14.66 billion (+75.5%), and net profit attributable to shareholders of the parent company was RMB 1.85 billion (+511.3%). Huaxi F10 showed 2026H1 net profit of RMB 2.985 billion (+277.52%), EPS RMB 1.62, and ROE 12.88%, slightly different from net profit attributable to shareholders of the parent company of RMB 2.957 billion, due to the difference between net profit (including minority interests) and net profit attributable to shareholders of the parent company; do not mix them up. 2026H1 segments: electronic circuit products RMB 12.53 billion (45.07% of total, YoY +13.3%, gross margin 18.80%); precision components RMB 6.581 billion (23.67%); optical modules RMB 5.351 billion (19.25%, gross margin 39.33%); optoelectronic display modules RMB 2.723 billion (9.80%); export sales RMB 23.13 billion (83.20% of total). Full-year 2025 segments: electronic circuits RMB 25.620 billion (63.85%), optical modules RMB 1.436 billion (3.58%, gross margin 36.74%). Data missing note: the 2026 Q3 report had not yet been disclosed as of the data cutoff.

The company's 2024 net profit attributable to shareholders of the parent company fell sharply by 44.74% to RMB 1.086 billion, mainly due to asset disposal losses and asset impairment losses from LED business optimization. In 2025, revenue exceeded RMB 40 billion, and net profit attributable to shareholders of the parent company resumed growth to RMB 1.386 billion (+27.67%), but was still about 41% below 2022's RMB 2.368 billion and about 19.31% below the 2025 institutional consensus of approximately RMB 1.931 billion, significantly underperforming, indicating that institutions' historical forecast accuracy is relatively low. In 2026, performance experienced explosive growth, with Q1 net profit attributable to shareholders of the parent company up +143.47% year-on-year and interim net profit attributable to shareholders of the parent company up +290.09% year-on-year to RMB 2.957 billion, mainly driven by rapid growth in the optical module business (2026H1 revenue RMB 5.351 billion, gross margin 39.33%), while electronic circuit products grew steadily. Note that the high profit growth relies on a single assumption of strong prosperity in optical modules, and 2025 Q4 single-quarter net profit attributable to shareholders of the parent company fell sharply by approximately 65% quarter-on-quarter, indicating performance volatility.

3.2 Profit Forecast

Forecast data comes from multiple sources with huge divergence. East Money consensus (as of approximately 2026-09): 2026E/2027E/2028E net profit attributable to shareholders of the parent company of RMB 7.312/15.40/25.96 billion, EPS of RMB 3.9933/8.4093/14.1718 (last month RMB 3.885/8.0233/13.9250), revenue of RMB 65.26/96.74/135.2 billion, and forecast ROE of 26.48%/36.74%/39.06%. Another MarketScreener basis (RMB million): revenue 2025A 40125/2026E 62993/2027E 89808/2028E 143720; net profit 2025A 1386/2026E 6585/2027E 12871/2028E 30804. Individual brokerage forecasts: Founder Securities (2026-08-29) 2026-2028 net profit attributable to shareholders of the parent company RMB 8.13/18.43/28.81 billion; Kaiyuan Securities 2026/2027/2028 net profit attributable to shareholders of the parent company RMB 6.878/12.824/19.267 billion; Yicai Rating by First Financial (2026-06) 2026E/2027E/2028E net profit attributable to shareholders of the parent company RMB 8.36/18.33/24.11 billion, with 2029E RMB 35.22 billion and 2030E RMB 38.65 billion; Citi (2026-06-24) raised 2026-2028 net profit forecasts, with its AI optical communications business expected to contribute net profit of RMB 5.4/25.7/52.7 billion in 2026/27/28. Uncertainty note: long-term forecasts diverge greatly; 2026E net profit attributable to shareholders of the parent company ranges roughly from RMB 6.88 billion to RMB 8.36 billion, 2027E roughly RMB 12.8 billion to RMB 18.4 billion, and 2028E roughly RMB 19.2 billion to RMB 30.8 billion, driven by high volatility and a single business (optical modules/optical chips), and should be treated with caution.

3.3 Valuation Levels and Institutional Ratings

East Money valuation comparison (approximately 2026-09 basis): PE (25A) 256.91x; PE (TTM) 99.33x; PE 2026E 48.70x/2027E 23.12x/2028E 13.72x; PEG 0.09; P/S TTM 6.99x, 2026E 5.46x; industry average PE (TTM) -77.46, industry median 70.56. Market cap (East Money, data based on 2026 interim report): total market cap RMB 356.1 billion, circulating market cap RMB 269.5 billion. Yicai Rating (First Financial) at different points in time: initial rating on 2025-11-19, share price RMB 71.69, total market cap RMB 131.308 billion, PE-TTM 105.76x, PB-MRQ 6.16x, DDM valuation RMB 66.334 billion, judged overvalued, downside -49%; 2026-06 report, share price RMB 260.32, total market cap RMB 476.804 billion, PE-TTM 233.72x, PB-MRQ 21.06x, DDM valuation raised to RMB 229.1 billion, judged severely overvalued, upside -52%. Jiemian News (2026-07-15): share price RMB 262.49, market cap approximately RMB 480.8 billion, cumulative gain of approximately 10x from 2025-04-10 to date. Latest available share price: closing price on 2026-09-09 RMB 196.06 (+5.17%). Uncertainty note: the above PE/PB/market cap figures come from different dates (2025-11, 2026-06, 2026-07, 2026-09), and because the share price fluctuated sharply during the period (RMB 71 → RMB 260 → RMB 196), valuation metrics cannot be directly compared horizontally; this summary did not obtain an exact official PE/PB snapshot for 2026-09-09, and the market cap of RMB 356.1 billion is roughly consistent with RMB 196 share price × 1.832 billion shares ≈ RMB 359.2 billion, which can serve as a cross-reference. The two consensus target price bases differ greatly (overseas S&P basis RMB 188 vs domestic Stockstar 11 firms over the last 90 days RMB 239.68), and the lowest target price of RMB 30 differs from the highest RMB 350 by more than 10x, reflecting highly divergent market views on the optical module business, and a single average should not be relied upon. Valuation depends extremely heavily on a single assumption of strong prosperity in optical modules/optical chips; Yicai Rating explicitly warned that AI has entered the mid-to-late investment stage, optical module technology iterates quickly, competition is intense, Source Photonics capacity utilization is already high, the expansion cycle is long, and yield challenges are significant, with future net margin declines possible. Risks also include high customer concentration (top five customers accounted for approximately 70% of revenue, Apple approximately 42%), a debt-to-asset ratio of approximately 58.8%, financial expenses eroding profits, and overseas trade/geopolitical risks. All share prices/valuations in this section are data from specific historical points in time, not real-time quotes; for the latest PE/PB, please refer to real-time quote pages.

IV. Recent News and Announcements

4.1 2026 Interim Results Pre-Announcement

Announcement date 2026-07-15: expected 2026 interim net profit attributable to shareholders of the parent company of RMB 2.900 billion–3.000 billion (RMB 2.9–3.0 billion), YoY change +282.58% to +295.78%. Source is the East Money stock calendar summary page (secondary data); the original pre-announcement text was not obtained.

4.2 2026 Q1 Results Pre-Announcement

Announcement date 2026-04-08: expected Q1 net profit attributable to shareholders of the parent company of RMB 1.000 billion–1.150 billion (RMB 1.0–1.15 billion), YoY +119.36% to +152.27%. Source is the East Money stock calendar summary page (secondary data); the original pre-announcement text was not obtained.

4.3 2026 Q1 Report

Disclosed 2026-04-28: net profit attributable to shareholders of the parent company RMB 1.11 billion, YoY +143.47%, basic earnings per share RMB 0.61.

4.4 2026 Interim Report

Disclosed 2026-08-22: operating revenue RMB 27.798 billion, net profit attributable to shareholders of the parent company RMB 2.957 billion, net profit attributable to shareholders of the parent company after deducting non-recurring items RMB 2.480 billion (YoY +277.18%). Revenue YoY bases differ slightly between two sources: Sina citing e Company said +63.95%, net profit attributable to shareholders of the parent company +290.09%; 21st Century Business Herald (reposted from East Money) said revenue +64.32%, net profit attributable to shareholders of the parent company +290.17%. The difference is extremely small and appears to be due to a difference between YoY and adjusted YoY bases; the original interim report should prevail.

4.5 2025 Full-Year Earnings Express and Summary of the 2025 Annual Report

Full-year 2025 (earnings express): total operating revenue RMB 40.12 billion, net profit attributable to shareholders of the parent company RMB 1.329 billion, basic earnings per share RMB 0.75. The 2025 annual report summary (Announcement No. 2026-015) was disclosed on 2026-04-22, with main-business-basis revenue of RMB 39.64 billion (plus other RMB 481 million, totaling approximately RMB 40.12 billion, which can be reconciled).

4.6 Progress of the Source Photonics Acquisition

Entered the optical communications field through acquisition in 2025. The 2026-06-17 investor relations activity record disclosed: the Source Photonics acquisition has basically been completed, the company has lawfully and compliantly completed payment of all consideration for the transaction, and Source Photonics has met the conditions for consolidation and has been included in the consolidated financial statements; remaining closing procedures are still being handled in the relevant legal jurisdictions. On Hudongyi, investors pressed about the industrial and commercial transfer registration, and the company's response has consistently been that the consideration has been paid, consolidation has occurred, and remaining closing procedures are being handled, meaning that as of the search date, equity industrial and commercial change registration in some jurisdictions had not yet been fully completed. If the question concerns whether legal equity transfer has been completed, the interim report/subsequent announcements should prevail, and it should not be directly written that equity change registration has been completed.

4.7 Increase in Investment Amount for Optical Chip and Optical Module Expansion Projects

In 2026-06, the board of directors reviewed and approved the "Proposal on External Investment." Source Photonics and its subsidiaries are implementing optical chip and optical module expansion projects in Changzhou and other locations, with total investment originally USD 1.2 billion. On 2026-08-20, the fourth meeting of the seventh board of directors approved the "Proposal on Increasing the External Investment Amount," adding USD 500 million of investment, raising the total project investment from USD 1.2 billion to USD 1.7 billion (Announcement No. 2026-045, disclosed 2026-08-21/22). The implementing entities are Source Photonics (and subsidiaries), Multi-Fineline Electronic (Thailand), and Yancheng Dongshan; the source of funds is self-raised. Rationale: AI computing demand, and Source Photonics' existing capacity can no longer meet customer demand. The extraordinary shareholders' meeting on 2026-09-11 reviewed and approved the corresponding proposal to increase the external investment amount.

4.8 Share Repurchase Plan

On 2026-07-20, the third meeting of the seventh board of directors approved a repurchase plan: proposed to use self-raised/lawful funds to repurchase A-shares through centralized bidding, with total repurchase funds of RMB 200–300 million and a repurchase price cap of RMB 367.04/share, for use in an employee stock ownership plan or equity incentive; based on the cap, the expected repurchase is 544,900–817,300 shares (0.030%–0.045% of total share capital); implementation period 12 months (relevant announcements 2026-036, 037, 038, disclosed 2026-07-21).

4.9 Share Repurchase Progress

As of 2026-08-31 (disclosed 2026-09-01/02, Announcement No. 2026-050): cumulative repurchase of 255,200 shares (0.2552 million shares), accounting for 0.01393% of total share capital, transaction price range RMB 192.20–200.60/share, total transaction amount RMB 49,994,780 (approximately RMB 49.9948 million, excluding transaction fees). Repurchase progress is clearly slow (by the end of August only approximately RMB 50 million had been used, about 1/4 of the RMB 200–300 million lower limit), and the actual transaction price (approximately RMB 192–200) is far below the RMB 367.04/share cap; the cap should be a price ceiling set according to a regulatory formula, not the company's expected price level. The share price in September was already significantly higher than the August repurchase price level (September 1 close RMB 188.69, intraday approximately RMB 190–196); whether repurchases continue in subsequent monthly reports is worth tracking.

4.10 Shareholding by Controlling Shareholder and Actual Controller

The shareholdings of Yuan Fugen, Yuan Yongfeng, and Yuan Yonggang were unchanged under the disclosure bases of 2026-03-31, 2026-06-30, and 2026-07-20 (Yuan Fugen 58.7961 million shares, Yuan Yongfeng 55.5970 million shares, Yuan Yonggang 50.5565 million shares, circulating basis; Yuan Yonggang's total shareholding basis approximately 302.7813 million shares = 16.53%). No evidence of reduction by the actual controller was found.

4.11 2026 Employee Stock Ownership Plan

First announced 2026-01-29, status completed on 2026-03-11, amount 3.048701 million shares (0.17% of total share capital), price RMB 39.25/share, source of shares from the repurchase special account. The RMB 39.25/share is seriously inconsistent with the 2026 share price (approximately RMB 85 at the beginning of the year, approximately RMB 190 in September), suspected to be an abnormal field basis/unit or cross-period data; it is recommended not to cite it directly and to verify against the original Cninfo text.

4.12 Northbound Capital Shareholding Changes

Hong Kong Securities Clearing Company: 2026-03-31 holding 69.4809 million shares (up 28.0842 million shares from the previous period), 2026-06-30 reduced to 69.0902 million shares (approximately -390,000 shares, 4.98% of circulating shares).

4.13 Institutional and Fund Shareholding

As disclosed on 2026-04-21, 1,180 institutions together held 577 million shares, accounting for 31.52% of total share capital; in Q4 2025, more than 120 institutions with disclosed holdings reduced positions (including reductions by Xingquan, while ETFs and insurance funds increased holdings).

4.14 Changes in Number of Shareholders

2026-03-31 was 108,519 accounts → 2026-05-20 was 284,513 accounts (+42,103) → 2026-05-29 was 306,048 accounts. In about two months, the number of shareholders nearly tripled, consistent with the rapid share price rise during the same period.

4.15 Resolutions of the Fourth Meeting of the Seventh Board of Directors (2026-08-20)

A series of proposals were approved: ① 2026 interim asset write-off (write-off of gross accounts receivable of RMB 148,237,747.51, with full bad debt provision already made and book value of 0, relating to long-standing historical balances); ② 2026 interim report; ③ estimated routine related-party transaction amount for 2026 (related directors Yuan Yonggang and Yuan Yongfeng recused); ④ increase in external investment amount (USD 500 million); ⑤ new external guarantee amount for 2026; ⑥ capital increase to wholly owned subsidiaries; ⑦ convening the second extraordinary shareholders' meeting.

4.16 External Guarantee Balance

As of the relevant announcement, the total external guarantee balance of the company and its subsidiaries was RMB 7.936 billion, accounting for 36.98% of audited net assets at the end of 2025, with no overdue guarantees and no litigation losses.

4.17 Announcements on Abnormal Stock Trading Fluctuations

Disclosed around 2026-04-13 and 2026-05-23 (reflecting the background of sharp share price fluctuations and a surge in the number of shareholders during April–May).

4.18 Shareholders' Meeting Information

The first extraordinary shareholders' meeting of 2026 was held on 2026-02-13; the second extraordinary shareholders' meeting of 2026 was held on 2026-09-11 (on-site + online, with 4,207 shareholders attending, representing 948.73 million shares, accounting for 51.9695% of total voting shares), and all proposals were passed.

4.19 Regulatory and Negative Event Review

No regulatory negative news such as CSRC/exchange investigations, penalties, inquiry letters, or major litigation was found; no earnings pre-announcement revisions were seen either (no revision disclosure from the 2026-07-15 pre-announcement to mid-September).

4.20 Data Timing and Uncertainty Notes

1. Data timing: This summary covers up to 2026-09-12 (announcement of the resolutions of the second extraordinary shareholders' meeting); price-related data are from early September and are for background reference only. 2. Numerical basis differences: 2026H1 revenue YoY +63.95% vs +64.32%, net profit attributable to shareholders of the parent company YoY +290.09% vs +290.17%, from different sources; the differences are extremely small but not unified, and the original interim report should prevail. 3. Secondary data risk: the interim/quarterly results pre-announcement figures come from the East Money stock calendar summary page, and the original pre-announcement text was not obtained; the employee stock ownership plan figure of RMB 39.25/share is clearly abnormal and is listed as not directly citable. 4. Legal status of Source Photonics equity: the company's position is that consideration has been paid, consolidation has occurred, and remaining closing procedures are being handled; investors questioned the industrial and commercial transfer registration, which is a matter not yet fully closed, and wording should be cautious. 5. Repurchase: amount RMB 200–300 million, cap price RMB 367.04/share; actual progress as of the end of August was only 255,200 shares/RMB 49.99 million, a relatively slow pace. 6. No evidence of actual controller reductions or regulatory penalties; at the shareholder structure level, the more prominent features are a surge in retail shareholder accounts + reductions by some public funds/northbound capital + increased holdings by ETFs and insurance funds.

V. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Dongshan Precision closed at RMB 194.42, regaining MA5 and MA10 but slightly below MA20 and the Bollinger middle band of RMB 194.57. The MACD histogram is positive and DIF is above DEA, indicating short-term rebound momentum remains; however, DIF and DEA are both below the zero line, the moving averages have not formed a bullish alignment, and the medium-term trend remains in repair rather than a clear strengthening state. RSI is in the neutral range, showing no obvious overbought or oversold condition. After surging to RMB 280.08 in July, the price experienced a rapid pullback, and recently there has been some selling pressure near RMB 195–200; at the same time, main funds recorded a cumulative net outflow of approximately RMB 457 million over the last 10 trading days, and short-term capital disagreement is relatively obvious.

5.3 Short-Term Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk warning: The following content is only a subjective scenario analysis based on the closing data of September 11, 2026, does not constitute investment advice, and does not represent a deterministic forecast of future share prices.

① Key Technical Levels

② Next-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high weight, approximately 60%; this weight is a subjective heuristic judgment based on current technical indicators and fund flows, not a statistical probability): price range approximately RMB 188–200. Trigger conditions include the share price fluctuating repeatedly around MA5, MA10, and MA20, turnover maintaining the recent normal range of approximately RMB 8–14.5 billion, main funds no longer showing consecutive large net outflows, and the RMB 198–200 resistance not effectively broken while the RMB 188–192 support is not yet lost.
• Weaker downside (medium weight; subjective heuristic judgment, not a statistical probability): price range approximately RMB 176–188. Trigger conditions include consecutive breaks below MA10 near RMB 188.9, continued relatively large net outflows by main funds, a volume-driven decline closing near the low, or overall weakness in electronics, optical modules, and high-prosperity hardware sectors. If it further breaks below the strong support zone of RMB 176–179, watch the area near RMB 170 and the previous low of RMB 161.80.
• Stronger rebound (low-to-medium weight; subjective heuristic judgment, not a statistical probability): price range approximately RMB 200–213. Trigger conditions include a volume-driven breakout and close firmly above RMB 198.7–200, single-day turnover clearly above the recent normal range with main funds returning to net inflow on up days, MA5 turning upward and moving away from MA10, the price regaining the Bollinger middle band of RMB 194.57, and synchronous strength in optical modules, PCB, or consumer electronics sectors. If volume continues after breaking RMB 200, watch RMB 205–213; the area near RMB 213 corresponds to the Bollinger upper band, and upside space before a breakout should not be regarded as a certain outcome.

③ Fund and Liquidity Background

As of September 11, 2026, recent turnover was approximately RMB 7.944–16.160 billion, of which single-day turnover from September 3 to September 11 was approximately RMB 7.944–16.160 billion; the research summary's recent normal range was approximately RMB 8–14.5 billion, and strong up days could exceed RMB 16 billion; turnover rate was approximately 3.17%–6.02%, usually approximately 3%–6%. Main funds recorded a cumulative net outflow of approximately RMB 457 million over the last 10 trading days, and the fund side has not yet formed stable and sustained inflows. Shareholder data as of June 30, 2026: total number of shareholders approximately 389,300, top ten shareholders together held approximately 718 million shares, accounting for approximately 39.21% of total share capital, down approximately 0.75 percentage points from the previous period; Yuan Yonggang, Yuan Yongfeng, and Yuan Fugen together held approximately 33.25%, with concentration mainly contributed by the controlling shareholder and related shareholders. Among the top ten shareholders, institutional holders such as public funds can be seen, for example China Construction Bank–Huatai-PineBridge Quality Growth Mixed Securities Investment Fund held approximately 0.38%; Tonghuashun data also showed holdings by funds such as Fullgoal Innovation Technology Mixed A, but the shareholding proportion of public funds and other institutions is relatively limited. The above shareholder structure is subject to quarterly lag and cannot be regarded as real-time holdings as of September 11, 2026; moreover, during the period the share price experienced a rapid pullback after the high of RMB 280.08, and the actual chip structure may have changed. Larger daily turnover means there is usually no obvious small-cap-style liquidity shortage, but recent volatility has been high and turnover of 7%–11% has appeared multiple times previously, so short-term slippage and chip exchange risks still need attention.

Volume confirmation signals to check: if the share price breaks upward through RMB 198.7–200, while single-day turnover reaches RMB 16 billion or more and remains at that level for at least two consecutive trading days, and main funds at least no longer show large net outflows, this can be regarded as a confirmation signal of improved short-term fund support; if it breaks below RMB 188.9 with clearly expanded turnover and continued net outflows by main funds, watch the risk of a pullback to the RMB 176–179 support zone.

④ Points to Watch (Observation Ideas Only, Not Trading Instructions)

• Watch whether the RMB 198.7–200 resistance zone can be broken with volume; do not equate a single intraday breakout with an effective breakout.
• Watch whether RMB 188.9–192.2 can be maintained; this range corresponds to MA10, MA5, and recent short-term support.
• Watch the strong support zone of RMB 175.8–179.5; after a break below, watch near RMB 170 and RMB 161.8.
• Watch whether single-day turnover can reach RMB 16 billion or more and be accompanied by improvement in main funds. All of the above are observation ideas, not trading instructions.

The above scenario analysis is based on the closing data of September 11, 2026 and historical prices and technical indicator calculations. Short-term share prices will also be affected by multiple factors such as news, fund flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments in light of the latest market information and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

The electronic circuits (PCB/FPC) industry in which Dongshan Precision operates is a foundational part of electronics manufacturing, with broad global market space but a fragmented competitive landscape; the optical module industry benefits from the explosive growth of AI computing demand and is in a high-prosperity cycle, but technology iterates quickly and competition is intensifying. Through a series of acquisitions (Mudong Optoelectronics in 2014, MFLX in 2016, Multek in 2018, Source Photonics in 2025), the company transformed from a traditional sheet metal stamping plant into a diversified intelligent interconnect solution provider covering electronic circuits, optical modules, precision components, and optoelectronic display modules.

6.2 Competitive Landscape

• Electronic circuits (PCB/FPC) industry: The global market is large, but competition in mid- and low-end capacity is intense, and the high-end FPC (flexible board) market is dominated by Japanese, Korean, and leading manufacturers. Dongshan Precision entered Apple's FPC supply chain through the acquisition of MFLX and became one of the world's leading FPC suppliers. In 2025, electronic circuit product output was 6.9788 million square meters and sales volume was 6.6935 million square meters (2024: 5.5796 million sqm and 5.5443 million sqm, respectively), with capacity continuing to expand.
• Optical module industry: AI computing demand drives rapid growth in the data center optical module market, with high-speed optical modules such as 800G/1.6T in short supply. Dongshan Precision entered this track through the acquisition of Source Photonics, whose customers include Microsoft, Amazon, Huawei, Alibaba, and others. In 2025, optical module output was 2.8726 million units and sales volume was 2.7933 million units; 2026H1 optical module revenue was RMB 5.351 billion, with a gross margin of 39.33%, becoming the core engine of the company's performance growth. In June 2026, it was announced that Source Photonics would implement optical chip and optical module expansion projects in Changzhou and other locations, with total investment of USD 1.2 billion (approximately RMB 8.1–8.7 billion; bases differ and the original announcement should prevail).
• Precision components industry: New energy vehicle lightweighting and intelligentization trends are driving growth in demand for precision structural parts. The company's new energy business revenue was RMB 8.650 billion for full-year 2024 (+36.98%), RMB 2.630 billion in 2025Q1 (+43.79%), RMB 3.810 billion in 2025H1 (+29.33%), and RMB 7.520 billion in the first three quarters of 2025 (+22.08%); the full-year 2025 basis was not obtained and is a data gap.
• Optoelectronic display module industry: LCD module sales volume in 2025 was 9.4879 million units and output was 9.5656 million units, down clearly from 2024 (sales volume 14.1786 million units, output 14.5118 million units). Competition in the industry is intense, with gross margin of only 5%-6%, making it a low-margin business segment.
• M&A integration is the company's main growth storyline: in 2014, acquired Mudong Optoelectronics for RMB 313 million to enter touch; in 2016, acquired U.S. FPC manufacturer MFLX for approximately USD 600 million (Apple chain); in 2018, acquired Multek, under Flex, for USD 293 million (rigid boards); in 2025, acquired 100% of Source Photonics for no more than RMB 5.935 billion, consolidated from October 2025.
• In terms of customer structure: the company's customers include four of the world's top five consumer electronics brand manufacturers, the world's top five pure electric vehicle manufacturers, and four of the world's top five cloud service providers. Customer quality is relatively high, but concentration is extremely high (top five customers accounted for 64.33% in 2025).

6.3 Main Competitors

In electronic circuits (FPC), Dongshan Precision entered Apple's supply chain through the acquisition of MFLX and competes with Zhen Ding Technology; in optical modules, it quickly entered through the acquisition of Source Photonics and, compared with leaders such as Zhongji Innolight, is still small in scale but growing extremely fast (2026H1 optical module revenue RMB 5.351 billion, gross margin 39.33%); in precision components, it overlaps partially with companies such as Luxshare Precision but with different focus (the company focuses on automotive structural parts and communications components). The company's core differentiation lies in its diversified layout of "electronic circuits + optical modules + precision components + optoelectronic display" and its ability to deeply bind major customers, but extremely high customer concentration (top five customers 64.33% in 2025) is both a barrier and a risk. Compared with peers, the company's net margin (approximately 10.6% in 2026H1) is at the mid-range of the industry, and the optical module business gross margin (39.33%) is lower than that of pure optical module leaders such as Zhongji Innolight (the summary does not provide Zhongji Innolight's gross margin data; this is an industry common-sense judgment), but higher than the company's traditional electronic circuit business.

VII. Risk Warnings

• Risk of declining prosperity and profitability in the optical module business: In the first half of 2026, optical module revenue was RMB 5.351 billion with a gross margin of 39.33%, and it has become the core driver of high profit growth; if AI computing demand slows, 800G/1.6T product iteration accelerates, or industry competition intensifies, orders, prices, and gross margins may fall short of expectations.
• Risk from large-scale capacity expansion and capacity digestion: The total investment in optical chip and optical module projects of Source Photonics and related subsidiaries has increased from USD 1.2 billion to USD 1.7 billion, funded by self-raised funds; expansion projects face uncertainties in construction cycle, equipment investment, capacity utilization, and product yield. If demand or customer certification progress falls short of expectations, the capital expenditure payback period may be extended.
• Risk of excessively high customer concentration: In 2025, the top five customers accounted for 64.33% of sales, with the largest customer accounting for 46.46%. The company adopts a customized contract manufacturing model for major customers, and customers have strong influence over part numbers, prices, and supply share; if core customer orders, product cycles, or supply chain share change, the company's revenue and profit may be significantly affected.
• Risk of profitability pressure in the electronic circuit business: Electronic circuits remain the company's largest revenue segment, with 2026H1 revenue of RMB 12.53 billion, accounting for 45.07%, but this business is in the midstream manufacturing segment and faces annual price reductions from major customers, raw material price volatility, and industry competition. If sales growth cannot cover price and cost pressure, profit support outside the optical module business may weaken.
• Risk from M&A integration and closing not being fully completed: Consideration for the Source Photonics transaction has been paid and it has been included in the consolidated financial statements, but remaining closing procedures are still being handled in the relevant legal jurisdictions, and some equity industrial and commercial change registrations have not yet been fully closed. Cross-border M&A also involves execution risks in business synergy, management integration, customer retention, and financial consolidation.
• Risk of drag from the traditional display module business: In 2025, the optoelectronic display module gross margin was only 5.18%, and in the first half of 2026 it was 5.89%; its 2025 sales volume declined clearly from 2024. If this business continues in a low-margin and highly competitive state, it may drag down the company's overall profit margin and bring further asset optimization or impairment pressure.
• Valuation and share price volatility risk: The closing price on September 11, 2026 was RMB 194.42, with a TTM dynamic P/E ratio of approximately 99.33x. The share price is down approximately 30.6% from the 52-week high of RMB 280.08, with recent pressure near RMB 195–200, and main funds recorded a cumulative net outflow of approximately RMB 457 million over the last ten trading days. If earnings growth, optical module expectations, or market risk appetite change, valuation may fluctuate significantly.
• Financial leverage, guarantee, and funding arrangement risk: The external guarantee balance of the company and its subsidiaries is RMB 7.936 billion, accounting for 36.98% of audited net assets at the end of 2025; at the same time, the company is advancing a USD 1.7 billion expansion project. Although existing disclosures show no overdue guarantees or guarantees involved in litigation, after combining expansion, guarantees, and daily operating funding needs, the impact of cash flow, financial expenses, and changes in assets and liabilities on profit still needs attention.

VIII. Conclusion and Outlook

Dongshan Precision has gradually shifted from a precision manufacturing enterprise mainly focused on consumer electronics FPC/PCB to a comprehensive platform of "electronic circuits + optical modules and optical chips + precision components." The 2026 interim results show that the revenue share and profit contribution of the optical module business are rising rapidly and, combined with steady growth in electronic circuits, form the main basis for current revenue expansion and profitability improvement. If expansion projects can proceed as planned and meet customer demand, the rising share of the optical module business is expected to continue improving the company's overall profit structure.

The key to future performance delivery lies in whether optical module demand, capacity expansion, product yield, and customer introduction can match relatively high market expectations, while also observing whether the electronic circuit business can maintain gross margin under annual price reduction pressure from major customers. Existing consensus forecasts for 2026–2028 net profit attributable to shareholders of the parent company diverge greatly, reflecting inconsistent market judgments on the continued high prosperity of the optical module and optical chip businesses.

The company still needs to address issues such as high customer concentration, cross-business M&A integration, overseas operations, and large capital expenditures. Source Photonics has paid the transaction consideration and has been included in the consolidated financial statements, but some closing procedures are still being handled; in addition, the external guarantee balance of the company and its subsidiaries is RMB 7.936 billion, accounting for 36.98% of audited net assets at the end of 2025. Therefore, in evaluating the quality of the company's growth going forward, emphasis should be placed on dynamic observation combined with the actual profit contribution of the optical module business, expansion progress, cash flow, and changes in assets and liabilities.

Data Sources

• 002384 Dongshan Precision
• Dongshan Precision (002384) Business Analysis_Individual Stock Quotes_Tonghuashun Finance
• Stock code: 002384
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• Dongshan Precision (002384.SZ) Core Themes-PC_HSF10 Data - Core Themes
• Dongshan Precision (sz002384)
• Dongshan Precision Listed Company Information
• Dongshan Precision (002384)_Stock Overview_Stock Price_Real-Time Quotes_Charts_News_Stock Reviews_Financial Reports_FinScope-AI Makes Investing Simpler
• Dongshan Precision: 2025 Annual Report Summary_Jiufang Zhitou - Global Index
• Dongshan Precision 2024 Annual and 2025 Q1 Results Online Briefing Concluded
• Dongshan Precision (002384)_Company Announcements_Dongshan Precision: 2024 Annual Report Sina Finance_Sina - The company uses a complete business chain system to provide customers with comprehensive, one-stop, industry-leading integrated services, thereby continuously deepening cooperation depth and stickiness with customers and achieving long-term stable cooperation with globally leading high-quality customers in consumer electronics, new energy vehicles, and communications equipment industries
• Dongshan Precision 2025 Interim Results Briefing Concluded
• Dongshan Precision (002384) - Dongshan Precision (002384)
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• China Business Journal Digital Newspaper Platform - | Page 13: TMT | Previous Edition 3 4 Next Edition
• Holding RMB 6.1 billion in cash! Dongshan Precision plans Hong Kong IPO, top five customers account for more than 60% of revenue
• Suzhou's Yuan Yongfeng and Yuan Yonggang brothers staged a turnaround; Dongshan Precision's market cap exceeded RMB 300 billion, and the board is about to reshuffle - by Xu Peiqi
• The road Dongshan Precision built, where does it lead? - Wang Zhiyuan 07-08
• The road Dongshan Precision built, where does it lead? - The road Dongshan Precision built, where does it lead?
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• Suzhou Dongshan Precision Manufacturing Co., Ltd.
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• Market cap surged by RMB 350 billion, catching the optical module trend, Dongshan Precision completed valuation reconstruction - - +1
• Market cap surged by RMB 350 billion, catching the optical module trend, Dongshan Precision completed valuation reconstruction - Market cap surged by RMB 350 billion, catching the optical module trend, Dongshan Precision completed valuation reconstruction
• Dongshan Precision's RMB 5.935 billion acquisition of Source Photonics finalized; target company consolidated from October
• RMB 456 billion Dongshan Precision plans USD 1.2 billion optical chip expansion; Source Photonics adds AI computing track - Stockstar
• Dongshan Precision: Source Photonics contributed 53% of profit in Q1
• Suzhou Dongshan Precision Manufacturing Co., Ltd.