Jiangsu Etern Company Limited (Yongding Shares) (600105)

Equity Research Report　|　Industries: Communications Cables and Related Products, Automotive Wiring Harnesses, Power Engineering, High-Temperature Superconductivity　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; technical indicators use daily data and unadjusted closing prices, and may differ across platforms due to calculation timing or methodology.

This report was automatically compiled by AI based on publicly available information. It is for reference only and does not constitute investment advice.

1. Executive Summary

Yongding Shares generated operating revenue of RMB 3.339 billion in the first half of 2026, up 47.75% year on year; net profit attributable to shareholders was RMB 503 million, up 58.06%; and non-GAAP net profit attributable to shareholders was RMB 504 million, up 59.81%. Net cash flow from operating activities turned positive at RMB 346 million. Earnings growth was driven primarily by the optical communications business. Optical communications revenue was approximately RMB 1.282 billion, up 199.82% year on year, making it the most decision-relevant source of growth at present. Automotive wiring-harness revenue was approximately RMB 900 million, up 15.04%; superconductivity and copper-conductor revenue was approximately RMB 494 million, up 37.37%; while power-engineering revenue declined 3.05% year on year.

The company has expanded from traditional optical communications cables, automotive wiring harnesses, power engineering and copper-conductor manufacturing into higher-value-added areas such as optical chips, high-temperature superconductivity and big-data applications. Its controlling subsidiary Suzhou Dingxin recently secured high-power laser-chip orders totaling approximately RMB 1.133 billion, with delivery scheduled through December 2027 and January 2028. However, customer identities, product gross margins and staggered delivery schedules have not been disclosed, and the order value cannot be directly equated with future revenue or profit.

Earnings quality and business mix remain differentiated. In 2025, consolidated gross margin was 13.36% and net profit attributable to shareholders was approximately 4.42% of revenue. Profit growth that year was affected by an increase in investment income recognized under the equity method from associates. In the first half of 2026, gross margin increased to 27.89%, while non-GAAP net profit was slightly higher than net profit attributable to shareholders, indicating more visible operating improvement. Nevertheless, automotive wiring harnesses continued to be affected by the ramp-up of new projects, while overseas power engineering remained under pressure from project delays, higher material prices, subcontracting costs and foreign-exchange movements.

As of September 11, 2026, the company’s share price closed at RMB 42.20, above the MA5, MA10 and MA20. Short-term technical momentum was relatively strong, but the share price was close to the Bollinger upper band of RMB 42.66. Daily turnover was RMB 8.654 billion and turnover rate was 14.13%, indicating high volatility and substantial divergence among market participants. Current TTM P/E was approximately 147x and P/B approximately 16.95x, suggesting that the market has already priced in relatively high expectations for optical communications demand, optical-chip orders and future earnings realization.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Optical communications: covers preforms, optical fibers and optical cables, and extends into optical chips, optical devices, MPO connectors, optical-network integration, data collection and analysis, information security and big-data applications
• Power transmission: includes overseas power engineering, automotive wiring harnesses, high-temperature superconducting tapes, electrical wires and cables, and copper conductors
• Optical communications: revenue of RMB 999 million in 2025, accounting for approximately 19.42% of revenue from principal operations, with a gross margin of 20.77%
• Automotive wiring harnesses: revenue of RMB 1.875 billion in 2025, accounting for approximately 36.45% of revenue from principal operations, with a gross margin of 11.73%
• Power engineering: revenue of RMB 1.381 billion in 2025, accounting for approximately 26.84% of revenue from principal operations, with a gross margin of 9.05%
• Superconductivity and copper conductors: revenue of RMB 841 million in 2025, accounting for approximately 16.35% of revenue from principal operations, with a gross margin of 11.73%; the annual report does not separately disclose revenue, costs or profit for high-temperature superconducting tapes and copper conductors
• Big-data applications: revenue of RMB 48.3606 million in 2025, accounting for approximately 0.94% of revenue from principal operations, with a gross margin of 74.88%

2.3 Position in the Industry Chain and Cost-Profit Structure

Yongding Shares is anchored by midstream manufacturing businesses such as optical communications cables, automotive wiring harnesses, electrical wires and cables. Overseas power engineering provides revenue support, while the company is extending into technology segments such as optical chips and high-temperature superconductivity. It remains primarily positioned in midstream manufacturing and engineering services, although certain specialty optical fibers, optical chips and superconducting products have potential to move toward higher-value-added segments.

• Upstream materials actually purchased or used in the optical communications business include optical-fiber preforms and related materials, quartz materials, fiber-coating materials, optical-cable sheath materials, steel wire, aluminum strips, water-blocking materials, and materials related to connectors and optical devices. In 2025, raw-material costs for optical communications were RMB 553 million, representing 69.88% of product costs. The company did not further break down the purchase value of specific materials or disclose the corresponding supplier concentration.
• The automotive wiring-harness business mainly uses copper conductors, wires, terminals, connectors, plastic housings, tape, corrugated tubes, seals and other insulating and protective materials. Raw-material costs were RMB 1.238 billion in 2025, accounting for 74.76% of costs. The company lacks absolute pricing power over copper and other bulk raw materials; the ability to pass through material-price changes depends on specific project contracts and the negotiating mechanisms of vehicle manufacturers.
• Raw-material costs for the superconductivity and copper-conductor business were RMB 683 million, accounting for 91.95% of segment costs, making the business highly sensitive to the prices of metal materials, superconducting-tape production materials and related substrates. The copper-conductor business is affected by copper-price volatility. In 2025, the company strategically built inventory for non-telecom-operator customers, and year-end inventory increased 73.33% year on year.
• Costs for overseas power engineering mainly include electrical equipment, conductors and cables, transformers and power-transmission and distribution equipment, engineering materials, subcontracting costs, transportation and on-site construction expenses. In 2025, material costs were RMB 564 million, representing 44.94% of costs, while subcontracting costs were RMB 642 million, representing 51.14%. Higher material prices, rising subcontracting costs, project delays and foreign-exchange fluctuations directly compress margins.
• Overall, the company has limited bargaining power over basic materials and commodities in ordinary optical cables, copper conductors and automotive wiring harnesses, and is closer to being a dual price taker in costs and products. Specialty optical fibers, optical chips and high-temperature superconductivity may command differentiated premiums based on technology and certification capabilities, but the available data on scaled operations is insufficient to confirm stable pricing power.
• The company has not disclosed supplier concentration or purchase-price pass-through mechanisms for specific categories such as quartz materials, copper, connectors, terminals and superconducting substrates, limiting the relevant analysis.
• Downstream customers in optical communications mainly include China Telecom, China Mobile, China Unicom, China Broadcasting Network, communications-equipment manufacturers, data-center customers, rail-transit customers and non-operator customers such as power companies. The operator market is characterized by centralized procurement, tendering and price competition. In 2025, operator centralized-procurement tenders were delayed, resulting in lower optical-cable production and sales volumes.
• Downstream customers for automotive wiring harnesses include SAIC Volkswagen, SAIC General Motors, Volvo, UZAUTO, BYD, Voyah Automobile and Leapmotor, as well as Tier-1 component customers including Cummins, Huawei, Yanfeng International and Adient. The company also disclosed cooperation with XPeng AeroHT in flying-car wiring harnesses. The business has long certification cycles and a high degree of customization, but automakers and large component customers generally have stronger bargaining power and require annual price reductions, cost control, quality and delivery performance from suppliers.
• Automotive wiring-harness suppliers typically become involved early in vehicle development. During the initial introduction of new projects, equipment, labor, yield and capacity ramp-up create pressure. In 2025, revenue growth in automotive wiring harnesses was mainly attributable to an increase in newly secured projects, but these projects were in the early ramp-up stage, resulting in higher manufacturing costs and lower gross margins.
• Downstream customers in overseas power engineering mainly include overseas power companies, government departments, State Grid and project owners. The business is primarily project-based, and revenue and profit are affected by project settlement progress, owner payments, project delays, local political and economic conditions, foreign-exchange movements and subcontractor management.
• Downstream applications for high-temperature superconducting tapes include controlled nuclear-fusion magnets, superconducting power equipment, superconducting induction heating, superconducting magnetic pulling of single crystals, advanced medical equipment, high-speed maglev, military applications and major scientific projects. The business remains in the industrialization and capacity-expansion stage, with uncertainty in customer validation cycles and commercialization progress.
• As of December 31, 2025, accounts receivable were RMB 1.460 billion, representing approximately 27.61% of annual operating revenue and approximately 6.25x 2025 net profit attributable to shareholders; inventory was RMB 899 million, representing 9.90% of total assets and up 36.89% year on year; contract assets were RMB 160 million, up 33.60%; accounts payable were RMB 1.308 billion, representing approximately 24.74% of annual operating revenue and up 45.00%; and prepayments were RMB 42.505 million, down 54.89%. Net cash flow from operating activities improved from an outflow of RMB 335.9763 million in 2024 to an inflow of RMB 311.6152 million in 2025. However, inventory and contract assets rose simultaneously, indicating that automotive wiring-harness expansion, copper-conductor stocking and overseas engineering settlements continued to consume substantial working capital. The annual report does not disclose accounts-receivable turnover days by business, balances owed by major customers or specific payment terms, preventing a precise assessment of collection bargaining power by business.
• Sales to the five largest customers totaled RMB 2.584 billion in 2025, accounting for 48.88% of annual sales. This figure relates to 2025, and the annual report does not disclose the names of the five largest customers or the sales amount from any individual customer. It is therefore impossible to determine the respective shares of the three major operators, automotive OEMs and overseas engineering owners. The data are sourced from a single source and have not been further cross-checked; the latest annual report should prevail. Overall customer concentration is relatively high, and operators and large automakers have substantial influence over prices, procurement schedules and delivery terms.

The company currently occupies a midstream manufacturing and engineering-services position. Optical communications cables, automotive wiring harnesses, copper conductors and overseas power engineering are generally midstream businesses whose margins are sensitive to material costs, centralized procurement or OEM pricing pressure, project execution and settlement. Big-data applications, specialty optical fibers, optical chips and high-temperature superconductivity represent expansion into higher-value-added segments. Future profit improvement will mainly depend on optical-communications product-mix upgrades and cost control, yield and scale effects after automotive wiring-harness projects ramp up, copper and engineering cost management, and whether optical-chip and high-temperature-superconductivity businesses can achieve scaled commercial deployment.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

As of June 30, 2026, the latest publicly available financial report was the 2026 interim report, published on August 20, 2026, and unaudited. Non-GAAP net profit attributable to shareholders in the first half of 2026 was RMB 503.89 million, up 59.81% year on year; basic EPS was RMB 0.344; and net cash flow from operating activities was RMB 346.46 million, compared with a net outflow of RMB 19.2845 million in the same period of the prior year. Full-year 2025 net profit included a relatively significant impact from investment income. Sources: the company’s 2026 interim report and related public information.

Revenue and profit both grew rapidly in the first half of 2026. Non-GAAP net profit attributable to shareholders was slightly higher than reported net profit attributable to shareholders, indicating that current-period profit was primarily generated by recurring operating activities and that non-recurring items had only a limited negative impact on reported profit. The company’s gross margin was 27.89%, up 14.30 percentage points year on year, while R&D expense was RMB 155.69 million, up 37.46%. By business, optical-communications revenue was approximately RMB 1.282 billion, up 199.82% year on year, making it the main source of revenue and profit growth; automotive wiring-harness revenue was approximately RMB 900 million, up 15.04%; power-engineering revenue was approximately RMB 656 million, down 3.05%; and superconductivity and copper-conductor revenue was approximately RMB 494 million, up 37.37%. It should be noted that the high year-on-year profit growth in the second quarter of 2026 was partly attributable to the low base in the same period of the prior year and should not be extrapolated mechanically to full-year growth. The company’s debt-to-asset ratio was approximately 62.43% in the first half of 2026, above the industry average of approximately 39.21% shown on the Tonghuashun page. Investors should continue to monitor operating cash flow, expansion investment, financing costs, order fulfillment and changes in optical-communications gross margin.

3.2 Earnings Forecasts

According to the Tonghuashun F10 summary, as of September 11, 2026, approximately five institutions had forecast Yongding Shares’ 2026–2028 results within the preceding six months. The table presents the institutional average. These figures are sell-side forecasts rather than company announcements or audited data, and differences among institutions are substantial. The institutional average may change with research-report updates, sample changes and data-refresh timing. The research memorandum indicates forecast ranges for net profit attributable to shareholders of approximately RMB 1.000–1.320 billion in 2026, RMB 1.790–3.471 billion in 2027 and RMB 2.810–4.197 billion in 2028.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the share price was approximately RMB 42.20, total market capitalization approximately RMB 61.37 billion, and free-float share capital approximately 1.462 billion shares. The 52-week price range was approximately RMB 9.90–73.97. Based on EPS of approximately RMB 0.29 disclosed in the 2026 interim report, the current rolling P/E was approximately 145x. Different market-data platforms showed P/E ratios of approximately 140–150x and P/B ratios of approximately 15.5–16.7x. Based on Pacific Securities’ 2026 EPS forecast of RMB 0.74, the implied 2026 forward P/E was approximately 57x. Based on the Tonghuashun institutional average EPS forecast of RMB 0.76, the implied 2026 forward P/E was approximately 56x. Based on institutional average EPS forecasts of RMB 1.90 and RMB 2.42 for 2027 and 2028, the implied forward P/E ratios were approximately 22x and 17x. Current TTM P/E and P/B are both high, indicating that the market has substantially priced in optical-communications demand, optical-chip orders and future earnings realization. Whether the valuation can be reasonably absorbed depends primarily on whether optical-communications revenue growth, fiber prices, optical-chip order delivery and margin improvement materialize. The company generated net profit attributable to shareholders of RMB 503 million in the first half of 2026, while most institutional forecasts for full-year 2026 net profit are in the RMB 1.0–1.3 billion range, implying that the company must generate approximately RMB 500–800 million in net profit in the second half. Forecast realization therefore depends heavily on sustained optical-communications strength and the ramp-up of optical-chip operations. Most publicly verifiable brokerage-report summaries do not disclose formal target prices from Chengtong Securities, China Merchants Securities, Founder Securities or Pacific Securities. Online reposts or self-media target prices should not be treated as formal institutional target prices. Investing.com shows an average 12-month target price of RMB 70, with both the high and low targets at RMB 70, based on two analysts. However, it does not fully disclose the analysts’ names, institutions or original reports, and should therefore be treated only as a reference from a market-data platform rather than a cross-verified institutional consensus target.

4. Recent News and Announcements

4.1 First-Half 2026 Earnings Preannouncement; Interim Results Largely Realized

On July 6, 2026, the company issued a preannouncement of first-half earnings growth, estimating net profit attributable to shareholders of RMB 500–700 million for the first half of 2026, up 57%–120% year on year, and non-GAAP net profit of RMB 490–690 million, up 55%–119%. The interim report released on August 20, 2026, showed operating revenue of RMB 3.339 billion, up 47.75% year on year; net profit attributable to shareholders of RMB 503 million, up 58.06%; and non-GAAP net profit of RMB 504 million, up 59.81%. Actual net profit attributable to shareholders was near the lower end of the previous guidance range. The company stated that earnings growth was mainly driven by optical-communications-related businesses, while profit in the automotive wiring-harness and overseas engineering segments declined year on year.

4.2 Proposed 2026 Interim Cash Dividend; Submitted to Extraordinary General Meeting on September 17

The company proposes to pay a cash dividend of RMB 0.35 per 10 shares, including tax, with no bonus shares and no capitalization of capital reserves. Based on total share capital of 1.461994802 billion shares as of June 30, 2026, the expected cash dividend totals approximately RMB 51.1698 million, representing 10.16% of first-half net profit attributable to shareholders. The company’s first extraordinary general meeting of 2026 is scheduled for September 17, 2026, to review the interim profit-distribution proposal. As of September 12, 2026, the proposal had not yet been approved by shareholders, and the final distribution amount may be adjusted if the share capital changes.

4.3 Controlling Subsidiary Secures Approximately RMB 1.133 Billion in High-Power Laser-Chip Orders

Around July 30, 2026, the company disclosed that its controlling subsidiary Suzhou Dingxin Optoelectronics Technology Co., Ltd. had entered into significant ordinary-course operating orders. Within one month, Suzhou Dingxin received a tax-inclusive order of approximately RMB 542 million from Customer A and a tax-inclusive order of USD 87 million, equivalent to approximately RMB 591 million, from Customer B. The two orders totaled approximately RMB 1.133 billion. Delivery deadlines are December 10, 2027 and January 3, 2028, respectively. The company stated that successful execution would be expected to have a positive impact on operating results in 2026 and 2027. Customer identities, product models, gross margins and staggered delivery schedules have not been disclosed. Order value should not be directly equated with future operating revenue or net profit.

4.4 Partial Release and Repledging of Shares by the Controlling Shareholder

On July 28, 2026, controlling shareholder Yongding Group released pledges on 87 million tradable shares and repledged 50 million of those shares to the Suzhou Yangtze River Delta Integrated Demonstration Zone Branch of Industrial and Commercial Bank of China. Following the announcement, Yongding Group had pledged a cumulative 146.5 million shares, representing 41.97% of its holdings and 10.02% of the company’s total share capital. Yongding Group held 349.034963 million shares, representing 23.87% of total share capital. Shares pledged and due to mature within the next six months totaled 65 million, corresponding to a financing balance of approximately RMB 240 million. The company stated that the controlling shareholder was in good credit standing and that there was currently no risk of forced liquidation.

4.5 Previous Share-Reduction Plan Completed; Reduction Ratio 1%

According to the company’s reduction-result announcement, controlling shareholder Yongding Group sold 14,616,709 shares through centralized bidding between March 24 and June 23, 2026, representing a 1% reduction and total proceeds of approximately RMB 486.4 million. The selling-price range was RMB 25.92–51.79 per share. Following completion, Yongding Group held 349,034,963 shares, representing 23.874% of the company. As of September 12, 2026, no newly disclosed share-increase plan or new large-scale share-reduction plan by major shareholders in September 2026 had been identified.

4.6 Abnormal Stock-Price Volatility; Company Warns of Valuation and Trading Risks

On August 7, 2026, the company disclosed an announcement on abnormal stock-price volatility. Between August 4 and 6, the cumulative deviation of the closing-price increase over three consecutive trading days reached 20%. Turnover rates during the same period were 14.29%, 17.88% and 13.50%, respectively. As of August 5, the company’s static P/E was approximately 228.71x and rolling P/E approximately 520.35x, while the corresponding static and rolling P/E ratios for the electrical machinery and equipment manufacturing industry were approximately 24.46x and 23.86x. Following a self-review and inquiries to the controlling shareholder and actual controller, the company stated that there were no material matters or material information that should have been disclosed but had not been disclosed. It also warned that there had been no material change in fundamentals and highlighted valuation and trading risks.

4.7 Additional RMB 174.8 Million in Bank-Credit Guarantees for Subsidiaries

As of September 12, 2026, the company disclosed an update on guarantees provided for subsidiaries applying for annual bank credit facilities. The guarantees totaled RMB 174.8 million, including RMB 100 million for Jinting Automotive Wiring Harness (Suzhou) Co., Ltd., RMB 55 million for Eastern Superconducting Technology (Suzhou) Co., Ltd. and RMB 19.8 million for Wuhu Jinting Electrical Co., Ltd. All guarantees were joint and several liability guarantees, with terms of one or three years, respectively, and the announcements disclosed no counter-guarantees. As of September 12, 2026, the company and its controlled subsidiaries had actual external guarantees totaling RMB 2.8914499 billion, representing 91.01% of audited net assets at the end of 2025. Actual guarantees provided by the company to controlled subsidiaries totaled RMB 2.4330499 billion, representing 76.58% of net assets. The company disclosed that there were currently no overdue guarantees.

4.8 Search for Buyback Matters Found No New Related Announcements

As of September 12, 2026, searches of announcements concerning share buybacks between June and September 2026 found no newly disclosed buyback plan, buyback-progress announcement or buyback-cancellation announcement.

4.9 Search for Mergers and Restructuring Found No New Material Announcements

As of September 12, 2026, no new announcements were identified concerning a material asset restructuring, issuance of shares to purchase assets, merger by absorption or material equity acquisition disclosed by the company between June and September 2026. The approximately RMB 1.133 billion high-power laser-chip orders secured by Suzhou Dingxin were ordinary-course operating orders and did not constitute a merger or restructuring.

4.10 Search for Regulatory and Policy Matters Found No Material Regulatory Actions

As of September 12, 2026, no announcements were identified indicating that the company had received exchange disciplinary action, been placed under investigation or faced material regulatory measures between June and September 2026. The abnormal-trading announcement disclosed on August 7, 2026, was a trading-risk warning and company self-review disclosure and did not represent regulatory punishment.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Yongding Shares closed at RMB 42.20, above MA5, MA10 and MA20. The MACD histogram was above the zero axis, and RSI was in neutral-to-strong territory, indicating relatively strong short-term technical momentum. At the same time, the share price was close to the Bollinger upper band at RMB 42.66. Trading value of RMB 8.654 billion and a turnover rate of 14.13% on September 11 were significantly above recent normal levels, indicating simultaneous increases in share turnover and divergence between bulls and bears. Main funds were generally in net inflow recently, but only four of the past 10 trading days recorded net inflows versus six with net outflows, meaning the direction of fund flows was unstable. Accordingly, the current condition is better characterized as a relatively strong short-term rebound in a high-volatility environment, rather than confirmation based on a single day’s rise that the medium-term trend has fully reversed or will continue.

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

⚠️ Risk warning: The following is a subjective scenario analysis based on the September 11, 2026 closing data. It does not constitute investment advice or a single-point price forecast.

① Key Technical Levels

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

• Range-bound consolidation (relatively high subjective weight, approximately 50%–60%; this is a subjective assessment based on current technical conditions and fund flows, not a statistical probability): price range of approximately RMB 40.0–43.5. Triggers include failure to effectively break through the RMB 42.66–43.50 resistance band, support after a pullback toward RMB 40.40–41.00, daily trading value declining to the recent normal range of approximately RMB 3.5–5.5 billion, and continued strength in the communications sector without broad acceleration. Under this scenario, the share price may repeatedly change hands above RMB 40 while awaiting new sector or company catalysts.
• Weak downside (medium subjective weight, approximately 30%; this is a subjective assessment based on current technical conditions and fund flows, not a statistical probability): price range of approximately RMB 36.7–40.0. Triggers include a break below the RMB 39.60–40.00 strong-support zone, trading value remaining above recent averages during the breakdown, consecutive net outflows from main funds, simultaneous weakness in the communications sector or a significant decline in market risk appetite, and concentrated profit-taking after the high turnover on September 11. If the price breaks below RMB 39.60 and cannot quickly recover, it may technically seek support around RMB 36.7–37.2.
• Stronger rebound (low-to-medium subjective weight, approximately 20%; this is a subjective assessment based on current technical conditions and fund flows, not a statistical probability): price range of approximately RMB 42.7–45.0. Triggers include a high-volume break through the RMB 42.66–43.50 resistance zone, daily trading value remaining above approximately RMB 6.0 billion, continued net inflows from main funds during the rise, continued fund attention to communications, optical communications or CPO-related sectors, and no obvious surge-and-retreat on at least the first trading day after the breakout. A confirmed break above RMB 43.50 could allow short-term expansion toward the previous high-volume trading area and around RMB 45. However, RSI6 has reached 66.1, so the breakout process may still be accompanied by substantial volatility.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, turnover rate was 14.13% and trading value was RMB 8.654 billion. Trading value over the past 10 trading days ranged from approximately RMB 3.154 billion to RMB 8.654 billion, with a 10-day average of approximately RMB 4.63 billion and a five-day average of approximately RMB 5.60 billion. The recent normal turnover-rate range was approximately 6%–8%. Daily trading value was approximately 1.87x the 10-day average, indicating ample short-term liquidity but a significant increase in share turnover and divergence between bulls and bears. Regarding the shareholder structure, as of June 30, 2026, the number of shareholders was 349,282, an increase of 71,587 from March 31, 2026, or 25.78% quarter on quarter. The top 10 tradable shareholders held approximately 490 million shares, representing approximately 33.51% of free-float shares, and concentration was assessed as “average.” As of March 31, 2026, institutions collectively held approximately 563 million shares, representing 38.49% of the free float, including funds at approximately 10.44%, QFII at approximately 1.01% and other institutions at approximately 27.02%. These institutional-holding figures are a quarter-end snapshot and lag the current trading date by one quarter; they should not be treated as real-time positions in September 2026, and “other institutions” cannot simply be equated with long-term public-fund allocations. The increase in shareholder count suggests that ownership may have become more dispersed at quarter-end, but it does not by itself prove institutional selling or indicate the future share-price direction. In practice, current order and trading liquidity are not characteristic of a low-liquidity small-cap stock, but price slippage may still widen rapidly during periods of high volatility. Regarding pledges by the controlling shareholder, as of August 7, 2026, Yongding Group Co., Ltd. had pledged approximately 147 million shares, representing approximately 10.02% of total share capital and approximately 41.97% of its holdings. Pledging does not necessarily imply a risk event, but its potential impact should still be monitored in a high-volatility environment.

If the share price attempts to break through the RMB 42.66–43.50 resistance zone and daily trading value remains above RMB 6.0 billion for several consecutive sessions, while main funds continue to record net inflows, the validity of the breakout would be somewhat strengthened. If the price rises but trading value falls back below RMB 4.0 billion, or if main funds turn clearly to net outflows, the risk of a false breakout should be monitored.

④ Points to Monitor (Observational Framework Only, Not Trading Instructions)

• Observe whether the RMB 42.66–43.50 resistance zone can be broken on increased volume and whether main funds continue to record net inflows during the breakout.
• Observe whether the RMB 40.40–41.00 area receives support during a pullback and whether trading value returns to the recent normal range.
• Observe whether the RMB 39.60–40.00 strong-support zone remains effective; if it breaks, continue monitoring the RMB 36.7–37.2 area.
• Observe whether trading value can remain above approximately RMB 6.0 billion during a breakout and whether this occurs together with net inflows from main funds. All of the above are observational considerations, not trading instructions.

The above scenario analysis is based on closing data from September 11, 2026, and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, the broader market and other factors. Technical indicators have inherent lags and limitations. This analysis does not guarantee future actual performance and does not constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Structure and Competitor Analysis

6.1 Industry Status

Yongding Shares operates across optical communications, automotive wiring harnesses, overseas power engineering, electrical wires and cables and copper conductors, high-temperature superconductivity and big-data applications. Its core remains manufacturing and engineering services. The overall industry is characterized by intense competition in traditional mid- and low-end products alongside growing demand for high-end products and new technologies. However, customer structures, cost pass-through and profit models differ substantially among businesses.

6.2 Competitive Landscape

• The fiber-optic and optical-cable industry has technical and customer-certification barriers. Operator procurement is highly concentrated, and tendering and centralized procurement have a significant impact on prices. Ordinary optical fibers and cables face homogeneous competition, while high-end specialty optical fibers, data-center fibers and high-speed optical devices generally have higher profitability than ordinary communications cables.
• In 2025, the optical communications industry saw growing demand for high-end products but intense competition in mid- and low-end products. AI data centers, computing networks, 5G-A and gigabit optical networks drove demand for high-end optical fibers, optical modules and optical devices, while traditional operator optical-cable markets remained affected by procurement cycles and price competition.
• Yongding Shares has a vertically integrated portfolio covering preforms, optical fibers, optical cables, optical chips, optical devices and data applications. However, compared with leading companies, it still trails in overall scale, customer coverage, R&D investment and the commercial scale of high-end products.
• The automotive wiring-harness industry is characterized by long customer-certification cycles, highly customized products and distinct vehicle life cycles. OEMs impose stringent requirements on quality, delivery, cost and annual price reductions. Rising new-energy-vehicle penetration is driving demand for high-voltage harnesses, battery-pack harnesses and lightweight harnesses, but equipment, labor, yield and capacity-ramp costs during the initial introduction of new projects may depress margins.
• The high-temperature-superconductivity industry remains in transition from scientific research and demonstration and project validation toward industrial applications. Barriers mainly include superconducting-film production processes, stable long-distance tape production, critical-current performance, yield and cost control, major-project certification and system-integration capabilities. The company’s market share, cost advantage and order scale cannot yet be confirmed from public information.
• Overseas power engineering is supported by Belt and Road projects, investment in power infrastructure and local grid-construction demand. However, project delays, political and policy risks, foreign-exchange fluctuations, higher material and equipment prices, subcontractor performance and owner collections make earnings more volatile than in standardized manufacturing.
• In 2025, the company’s optical-communications gross margin increased, while gross margins for automotive wiring harnesses and power engineering declined. This indicates that revenue growth does not necessarily translate into simultaneous profit growth. Net profit attributable to shareholders in 2025 was also affected by increased equity-method investment income from associates.

6.3 Major Competitors

Yongding Shares is highly comparable with Hengtong Optic-Electric and Zhongtian Technology in optical fibers and cables, power cables and communications infrastructure, although the latter two have greater overall scale, business diversification or industry-chain completeness. Compared with FiberHome Telecommunications Technologies, Yongding Shares is more focused on cable manufacturing, while FiberHome is more focused on communications equipment and system integration. Compared with Yangtze Optical Fibre and Cable, Yongding Shares has a more diversified business portfolio but lags in preforms, optical-fiber technology and global scale. In automotive wiring harnesses, Yongding Shares has direct or partial business overlap with Kunshan Huguang, Delphi Packard, LEONI, TSK and Changchun Sanzhi. These companies do not compete directly across all business lines; industry classifications and comparability are mainly based on the degree of business overlap.

7. Risk Factors

• The growth and earnings sustainability of the optical-communications business remain uncertain. Optical-communications revenue grew 199.82% year on year in the first half of 2026, but the company remains exposed to operator centralized-procurement schedules, tendering price competition and homogeneous competition in ordinary optical cables. If demand for high-end products or order deliveries fall short of expectations, current earnings and valuation expectations may be affected.
• High-power laser-chip orders carry execution risk. The two orders disclosed by Suzhou Dingxin total approximately RMB 1.133 billion, but customer names, product models, gross margins and staggered delivery arrangements have not been disclosed. Delivery extends through the end of 2027 and the beginning of 2028, and the orders cannot be directly converted into current-period revenue or net profit. Actual execution will also depend on customer acceptance and production capacity.
• The company’s current valuation relies heavily on future earnings realization. As of September 11, 2026, the share price was approximately RMB 42.20, with a TTM P/E of approximately 147x and P/B of approximately 16.95x. Institutional average forecasts for 2026 net profit attributable to shareholders are approximately RMB 1.120 billion, compared with RMB 503 million realized in the first half. Full-year forecasts therefore require substantial second-half profit realization. If optical communications or optical chips ramp more slowly than expected, valuation volatility could increase.
• The automotive wiring-harness business faces project-ramp and customer-bargaining risks. Revenue was RMB 1.875 billion in 2025, but gross margin declined to 11.73%. The company disclosed that newly secured projects were in the early ramp-up stage, with high equipment, labor, yield and capacity costs. At the same time, OEMs and large component customers have strong bargaining power, and annual price reductions and insufficient cost pass-through could continue to compress margins.
• Overseas power engineering has relatively high earnings volatility. Gross margin declined to 9.05% in 2025, as the business was affected by project delays, higher material prices, increased subcontracting costs and foreign-exchange movements. The business also involves owner payments, local political and economic conditions and subcontractor performance. Delayed settlements or cost overruns could further affect profit and cash flow.
• Raw-material prices and working-capital requirements may erode profit. Raw-material costs accounted for 74.76% of automotive wiring-harness segment costs and 91.95% of superconductivity and copper-conductor segment costs. At the end of 2025, accounts receivable were RMB 1.460 billion, inventory RMB 899 million, up 36.89% year on year, and contract assets RMB 160 million, up 33.60%. Changes in copper prices, material prices or collections may amplify cash-flow pressure.
• Leverage, guarantees and pledges by the controlling shareholder require continued monitoring. The debt-to-asset ratio was approximately 62.43% in the first half of 2026. As of September 12, 2026, actual external guarantees totaled RMB 2.891 billion, representing 91.01% of net assets at the end of 2025. The new guarantees were joint and several liability guarantees, and the announcements disclosed no counter-guarantees. Shares cumulatively pledged by the controlling shareholder represented 10.02% of total share capital, which may increase financing and credit risk in a high-volatility environment.
• Short-term share-price volatility and crowded trading pose substantial risks. Trading value was RMB 8.654 billion and turnover rate 14.13% on September 11, 2026. The share price was close to the RMB 42.66–43.50 resistance zone, while fund inflows and outflows alternated over the past 10 trading days. If volume is insufficient during a breakout of resistance, or if the RMB 39.60–40.00 support zone breaks, a substantial pullback may occur.

8. Conclusion and Outlook

The company’s growth thesis is concentrated in improving optical-communications demand, product-mix optimization and the realization of optical-chip orders. In the first half of 2026, rapid growth in optical-communications revenue drove an improvement in overall gross margin. If high-end optical-communications products and optical-chip orders are delivered as planned and margins continue to improve, earnings may continue to expand. Automotive wiring harnesses, however, need to rely on new projects completing their capacity, yield and scale ramp-up, while the superconductivity business requires further validation of its industrialization and commercialization progress.

Institutional average forecasts call for net profit attributable to shareholders of approximately RMB 1.120 billion, RMB 2.784 billion and RMB 3.539 billion in 2026–2028, respectively. However, forecast ranges vary substantially, and the 2026 full-year forecasts imply that the company must generate approximately RMB 500–800 million in net profit in the second half. The degree of realization will depend largely on sustained optical-communications strength, delivery of optical-fiber and optical-chip orders and margin improvement. The company’s current valuation is high, and future earnings growth must consistently exceed market expectations to gradually absorb valuation pressure.

Going forward, investors should focus on whether optical-communications revenue and gross margin continue to grow, the actual delivery and profit contribution of the RMB 1.133 billion laser-chip orders, margin recovery following the ramp-up of automotive wiring-harness projects, and settlement and cash collection in overseas power engineering. At the same time, with a debt-to-asset ratio of approximately 62.43% and actual external guarantees equal to 91.01% of net assets at the end of 2025, the importance of financial leverage and cash-flow management is increasing as capacity expansion, order fulfillment and working-capital requirements grow.

Data Sources

• Yongding Shares (600105)_Company Announcements_Yongding Shares: 2026 Interim Report_Sina Finance_Sina.com
• Jiangsu Yongding Shares Co., Ltd. 2026 Interim Report Summary|Shanghai Securities Journal
• Reportify - Intelligent Financial Investment Agent
• Yongding Shares (600105): 26H1 Earnings Grow Rapidly; Optical Communications Upcycle Continues__Sina Finance_Sina.com
• Yongding Shares (600105) Earnings Forecast_F10_Tonghuashun Financial Services
• Yongding Shares (600105) Earnings Forecast_F10_Tonghuashun Financial Services
• Pacific Securities: Initiates Coverage of Yongding Shares with a Buy Rating_Brokerage Research Reports_Data Analysis_Stocks_Securities Star
• Yongding Shares (600105) Earnings Forecast_F10_Tonghuashun Financial Services
• Yongding Shares (600105) Individual Stock Analysis_Niucha Stock Diagnosis_Tonghuashun Finance
• Yongding Shares (600105) Latest Stock Price, Real-Time Chart, Share-Price Analysis and Forecast_Investing.com
• Yongding Shares (600105)_Stock Quotes, Market Overview_China Financial Information
• List of Companies Listed on the Main Board of the Shanghai Stock Exchange
• Company Announcement_Yongding Shares: Announcement of Expected Increase in 2026 Interim Results_Sina Finance_Sina.com
• Yongding Shares (600105)_Company Announcements_Yongding Shares: 2026 Interim Report_Sina Finance_Sina.com
• Yongding Shares (600105)_Company Announcements_Yongding Shares: Materials for the First Extraordinary General Meeting of 2026_Sina Finance_Sina.com
• Yongding Shares: Voluntary Disclosure Announcement on a Controlling Subsidiary Entering into Significant Ordinary-Course Operating Orders_Stock Channel_Securities Star
• Company Announcement_Yongding Shares: Announcement on Partial Release and Repledging of Equity by the Controlling Shareholder_Sina Finance_Sina.com
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• Company Announcement_Yongding Shares: Announcement on Abnormal Stock Trading Volatility_Sina Finance_Sina.com
• Yongding Shares (600105)_Company Announcements_Yongding Shares: Announcement on Progress of Guarantees for Subsidiaries Applying for Annual Bank Credit Facilities_Sina Finance_Sina.com
• Yongding Shares (600105) Stock Price, Market Data, Live Stream, News, Financial Reports and Data - AiguPiao
• Yongding Shares (600105.SH) Stock Quotes_Historical Data_Main Fund Flows_Dabolang Data
• Yongding Shares (600105) Individual Stock Details_Dapanbao
• Yongding Shares (as of June 30, 2026) Shareholder Count 349,282, Up 25.78% Quarter on Quarter
• Yongding Shares (600105) Latest Developments_F10_Tonghuashun Financial Services
• Yongding Shares (600105) Latest Developments_F10_Tonghuashun Financial Services

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current through the September 11, 2026 close; technical indicators use daily data and unadjusted closing prices, and may differ across platforms due to differences in calculation timing or methodology. The report may contain timing discrepancies. Specific data should be based on the company’s official announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.