Jiangsu Hengtong Optic-Electric Co., Ltd. (Hengtong Optic-Electric) (600487)

Individual Stock Analysis Report | Industry: Communications Optical Cable, Power Cable and Marine Energy Systems | Report Date: September 13, 2026 | As of the close on September 11, 2026; September 12, 2026 is a Saturday, with no A-share trading. Technical indicators mainly reference public technical indicator pages and approximate historical closing price verification as of September 11, 2026. Indicators may differ slightly across platforms due to different adjustment methods, calculation timing, moving average conventions and data refresh times.

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

1. Core Summary

Hengtong Optic-Electric achieved operating revenue of RMB 42.026 billion in the first half of 2026, up 31.13% year-on-year; net profit attributable to shareholders of the listed company was RMB 3.120 billion, up 93.38% year-on-year, with non-recurring net profit attributable to parent up 100.62% year-on-year, and half-year net profit already exceeded the full year of 2025. The performance improvement mainly came from AI data center and computing power capital expenditures, growth in optical communications demand, price increases for optical fiber and specialty optical fiber products and product mix optimization; the comprehensive gross margin for the period rose to 16.77%, up approximately 3.18 percentage points from the same period last year.

The company's business structure still exhibits the characteristics of "low-margin large-volume business + high-margin technology business." In 2025, copper conductor and smart grid revenue together accounted for approximately 67% of operating revenue, of which copper conductor revenue was RMB 20.084 billion with a gross margin of only 1.45%; optical communications and marine energy & communications revenue together accounted for approximately 17%, with gross margins of 27.53% and 33.68% respectively. In the first half of 2026, optical communications business revenue grew by more than 130% year-on-year, with related business gross margin exceeding 60%, becoming the core source of profit growth, but the sustainability of growth in high-margin businesses will determine overall profit quality.

The company possesses integrated capabilities spanning optical preform—optical fiber—optical cable—optical devices, and has extended into transoceanic submarine communications, ultra-high-voltage submarine cables, offshore wind power engineering and system integration. Recently won bids and signed marine energy projects total approximately RMB 1.831 billion, accounting for approximately 2.74% of 2025 operating revenue, but some projects have not yet fully signed formal contracts, and project amounts are not equivalent to revenue recognized in the current period.

As of September 11, 2026, the stock price closed at RMB 65.24, still within a wide oscillation range of approximately RMB 60 to RMB 71, with a dynamic price-to-earnings ratio of approximately 38.4x. Technical indicators show the price is near short-term moving averages and the Bollinger Band middle track, MACD remains near negative territory, and recent main force capital has generally been outflowing, with the market still holding high expectations and divergent views on whether the high growth and high gross margin of optical communications can be sustained.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Communications network business: including optical fiber preforms, optical fibers, optical cables, optical devices, optical modules, data center optical interconnect products, specialty optical fibers, industrial communications, all-optical networks, communications network design and engineering services, and transoceanic submarine optical cable communication systems, etc.
• Energy interconnection business: including smart grid, ultra-high-voltage and extra-high-voltage cables, transmission conductors, aluminum alloy conductors, copper conductors, land and submarine cables, offshore wind power cables, marine oil and gas flexible pipes and umbilicals, offshore wind power engineering and power engineering EPC, etc.
• Optical communications business: 2025 operating revenue of RMB 5.609 billion, accounting for approximately 8.4% of consolidated operating revenue, with a gross margin of 27.53%.
• Marine energy & communications business: 2025 operating revenue of RMB 5.737 billion, accounting for approximately 8.6% of consolidated operating revenue, with a gross margin of 33.68%.
• Smart grid business: 2025 operating revenue of RMB 24.796 billion, accounting for approximately 37.1% of consolidated operating revenue, with a gross margin of 13.02%.
• Copper conductor business: 2025 operating revenue of RMB 20.084 billion, accounting for approximately 30.0% of consolidated operating revenue, up 33.83% year-on-year, with a gross margin of 1.45%.
• Industrial and new energy intelligent business: 2025 operating revenue of RMB 7.308 billion, accounting for approximately 10.9% of consolidated operating revenue, with a gross margin of 14.01%.
• Other businesses: 2025 operating revenue of RMB 2.570 billion, accounting for approximately 3.8% of consolidated operating revenue, with a gross margin of approximately 11.37%.
• The company has formed a vertically integrated industrial chain of "optical preform—optical fiber—optical cable—optical devices," and has extended into submarine communication systems, offshore wind power engineering and system integration services.

2.3 Industry Chain Position and Cost-Profit Structure

Hengtong Optic-Electric has extended from a traditional optical fiber cable and power cable manufacturer to a comprehensive information and energy interconnection solutions service provider spanning communications networks, smart grid, marine energy & communications, industrial and new energy intelligence, and general engineering contracting. The revenue structure exhibits the characteristics of "low-margin large-volume business + high-margin technology business": copper conductor and smart grid together accounted for approximately 67% of revenue in 2025, while optical communications and marine energy & communications together accounted for approximately 17% of revenue, but their gross margins reached 27.53% and 33.68% respectively.

• The optical communications business mainly procures high-purity chemical materials, quartz materials, doping materials and coating materials required for optical fiber preforms, as well as optical fibers, sheath materials, strength members, steel tapes and aluminum tapes required for optical cables.
• The smart grid and marine energy businesses mainly consume copper rods, aluminum rods, aluminum alloy rods, insulation materials, sheath materials, armoring materials, steel wires and engineering auxiliary materials; specialty cables and industrial intelligence businesses also involve rubber and plastic materials, connectors, electronic components and sensors, etc.
• The core input of the copper conductor business is copper and related metal materials. In 2025, raw materials accounted for 99.11% of the cost of the copper conductor business, while raw materials accounted for 91.41% and 92.69% of the cost of the smart grid and industrial & new energy intelligent businesses respectively, indicating that related businesses are sensitive to bulk metal and material prices.
• In 2025, raw materials accounted for 55.67% of the cost of the optical communications business; raw materials accounted for 24.36% of the cost of the marine energy & communications business, but other costs accounted for 73.26%, reflecting the heavier weight of engineering construction, transportation, installation, project management and outsourced services costs.
• The company has its own copper rod, aluminum rod and aluminum alloy rod production subsidiaries, which can improve internal sourcing capability for some metal materials, but it does not own copper mines, aluminum mines or other upstream resources, and cannot completely eliminate metal price fluctuation risk.
• The copper conductor and ordinary power cable businesses lack substantive pricing power over bulk commodities such as copper and aluminum, and product prices usually need to be transmitted through copper price linkage or processing fee mechanisms; regarding the specific situation of raw material supplier concentration, the research notes did not provide supplier-by-supplier names or more granular concentration data.
• Major customers include communications operators and their subsidiaries, internet companies, cloud computing and data center customers, State Grid, China Southern Power Grid and local power companies, the five major power generation groups, new energy developers, as well as offshore wind power, marine oil and gas, cross-sea interconnection, rail transit, petrochemical, industrial equipment, automotive and robotics customers, etc.
• In 2025, sales to the top five customers amounted to RMB 9.550 billion, accounting for 14.29% of annual total sales; sales to related parties among the top five customers were 0. This data is on a 2025 annual basis; the research notes did not provide the specific names of the top five customers or their individual proportions, and this time no further cross-verification was conducted, so it cannot be used to judge the specific bargaining power of a single customer.
• Communications operator procurement is usually conducted through centralized bidding, and ordinary optical fiber cables face price competition and share competition; power grid customer procurement is large in scale with high certification barriers, and suppliers need to undergo long-term certification.
• Offshore wind power and marine engineering projects have customized, project-based and technical certification attributes, and supplier switching costs are relatively high, but project delivery and payment collection cycles may be relatively long; overseas projects also face local certification, exchange rate, trade policy and engineering performance risks.
• In ordinary optical fiber cables, ordinary cables and copper conductor businesses, the company is closer to a scale manufacturer and lacks absolute pricing power over downstream customers; in transoceanic submarine cable systems, ultra-high-voltage submarine cables, specialty optical fibers and complex offshore wind power engineering fields, technology, certification and project experience bring relatively stronger bargaining power.
• In 2025, procurement from the top five suppliers amounted to RMB 18.541 billion, accounting for 34.16% of annual total procurement; procurement from related parties among the top five suppliers was 0. The research notes did not disclose specific supplier names or individual proportions.
• As of December 31, 2025, accounts receivable were approximately RMB 17.375 billion, equivalent to approximately 26.0% of annual revenue based on 2025 operating revenue of RMB 66.855 billion; third-party financial indicators show accounts receivable turnover days of approximately 95.47 days in 2025, approximately 98.70 days in 2024, and approximately 119.94 days in 2023. In 2025, net cash flow from operating activities was RMB 2.808 billion, down 13.93% year-on-year. The above accounts receivable balance and turnover days are partly compiled from third-party databases, and the original financial statements and indicators in the 2025 annual report shall prevail; the data indicate that power grid, operator, offshore engineering and large industrial customers impose certain payment terms and working capital occupation on the company, but this alone cannot be used to conclude that downstream parties are in default.
• In 2025, the proportion of sales to the top five customers was 14.29%, and the proportion of procurement from the top five suppliers was 34.16%, both on an annual basis; related parties were 0 among both the top five customers and suppliers. The research notes did not provide specific customer and supplier names or individual proportions, and the customer concentration data was not further cross-verified in this material, with the latest annual report prevailing.

The company is positioned at "extending from midstream cable manufacturing to high-end communications, power and marine system integration": copper conductors and ordinary cables belong to the scale-based, low-margin segment, while optical communications, specialty optical fibers, transoceanic submarine communications, ultra-high-voltage submarine cables and offshore wind power engineering are in relatively high value-added segments. Future profit margin improvement mainly depends on the ramp-up of high-end optical fibers and submarine communications, delivery of marine energy engineering projects, improvement in overseas localized capacity utilization, and a decline in the proportion of low-margin copper conductor and other businesses, rather than relying solely on revenue scale expansion.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formally disclosed financial report is the "2026 Semi-Annual Report," covering the period from January 1, 2026 to June 30, 2026, disclosed on August 27, 2026. Non-recurring net profit attributable to parent in the first half of 2026 was RMB 3.151 billion, up 100.62% year-on-year; the same period last year was RMB 1.571 billion.

In the first half of 2026, both operating revenue and net profit attributable to parent achieved relatively rapid growth, with net profit attributable to parent reaching approximately 116% of the full year 2025. The comprehensive gross margin was 16.77%, up approximately 3.18 percentage points year-on-year; the net margin attributable to parent was approximately 7.42%, up approximately 2.39 percentage points year-on-year; the weighted average return on equity was 9.43%, up 3.96 percentage points year-on-year; basic earnings per share were approximately RMB 1.29. Performance growth was mainly driven by factors such as AI data center construction and computing power capital expenditures, price increases for optical fibers and specialty optical fiber products, simultaneous volume and price increases in the optical communications business, and product mix improvement. In the first half of 2026, optical communications business revenue grew by more than 130% year-on-year, with related business gross margin exceeding 60%, becoming the core source of profit growth. Net cash flow from operating activities was -RMB 865 million, lower than approximately RMB 50 million in the same period last year; the debt-to-asset ratio at period end was approximately 52.39%, and the quality of converting profit growth into cash flow still needs to be observed.

3.2 Earnings Forecast

As of September 11, 2026, Tonghuashun F10 compilation shows that within the past 6 months, a total of 14 institutions have forecast the company's 2026 performance. The above data are institutional research report forecasts, not formally disclosed company data. Institutional forecasts diverge significantly: the forecast ranges for net profit attributable to parent for 2026-2028 are RMB 4.110 billion to RMB 9.287 billion, RMB 4.740 billion to RMB 13.019 billion, and RMB 8.066 billion to RMB 16.414 billion respectively; EPS forecast ranges are RMB 1.67 to RMB 3.77, RMB 1.92 to RMB 5.28, and RMB 3.27 to RMB 6.66 respectively. The detailed institutional breakdown publicly displayed mainly covers 9 institutions recently, and some data may have differences in update timing and statistical conventions.

3.3 Valuation Level and Institutional Ratings

As of September 11, 2026, the company's closing price was RMB 65.24, up 2.08%, with a total market capitalization of approximately RMB 160.9 billion. There are significant differences in valuation conventions across platforms: CFI.cn shows a P/E ratio of approximately 38.05x, a non-recurring P/E ratio of approximately 38.43x, and a price-to-book ratio of approximately 4.30x; JRJ.com on the same day shows a P/E ratio of approximately 25.79x, with uncertainty regarding the specific calculation convention. Based on the closing price of RMB 65.24 and the TTM EPS of approximately RMB 1.73 shown on the Investing page, the static estimated PE is approximately 37.7x. Based on the institutional consensus EPS, the corresponding PE for 2026-2028 is approximately 21.9x, 17.9x and 14.7x; based on Huatai Securities' forecast, the corresponding PE is approximately 19.2x, 12.4x and 9.8x; based on Capital Securities' forecast, the corresponding PE is approximately 29.7x, 23.5x and 18.9x. The publicly compiled 2026 target price range is approximately RMB 87.48 to RMB 116.00, with an average target price of approximately RMB 98.56, but different institutions have different rating dates, earnings forecast bases and target price calculation methods, and the average target price should not be simply regarded as a unified market consensus. Overall, the current valuation already incorporates relatively high growth expectations, and the valuation level depends on whether the high gross margin and high growth of optical communications can be sustained. Main risks include the sustainability of optical fiber price increases falling short of expectations, a slowdown in AI data center capital expenditure growth, industry competition leading to gross margin decline, marine energy business delivery falling short of expectations, and operating cash flow remaining negative.

4. Recent News and Announcements

4.1 2026 Semi-Annual Earnings Pre-Increase

The company disclosed on July 14, 2026 that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be RMB 3,015,675,900 to RMB 3,568,377,200, up 86.94% to 121.20% year-on-year; it expects net profit after deducting non-recurring gains and losses to be RMB 3,049,642,200 to RMB 3,602,343,500, up 94.14% to 129.32% year-on-year. Performance growth was mainly affected by factors such as artificial intelligence development, increased data center capital expenditures, growth in optical communications market demand and product price increases.

4.2 2026 Semi-Annual Report and Earnings Briefing Arrangements

The company disclosed its 2026 semi-annual report on August 27, 2026, and disclosed the semi-annual earnings briefing announcement on September 9, 2026. The earnings briefing is scheduled to be held on September 15, 2026 from 15:00 to 16:00 through the "Value Online" online text interaction method. As of September 12, 2026, the earnings briefing has not yet been held, and investor Q&A and further management statements have not yet formed formal public information.

4.3 Repurchase and Cancellation of Certain Restricted Shares

The company plans to repurchase and cancel certain restricted shares under the 2024 restricted stock incentive plan because 2 incentive recipients resigned for personal reasons and no longer meet the incentive conditions, and it plans to repurchase and cancel 33,000 restricted shares already granted but not yet unlocked. The repurchase price is RMB 7.135 per share, and the total repurchase funds are expected to be RMB 235,455, with the source of funds being the company's own funds. After the cancellation is completed, the company's total share capital is expected to change from 2,466,343,957 shares to 2,466,310,957 shares. The relevant proposal is planned to be submitted to the fourth extraordinary shareholders' meeting of 2026 to be held on September 14, 2026 for review. This matter is not an ordinary share repurchase plan targeting the secondary market.

4.4 Completion of 2025 Annual Reward Fund Purchasing Company Shares Through Trust

The company accrued a reward fund of RMB 105,311,700.73 for 2025. On July 22, 2026, Huaneng Trust purchased 1,851,300 shares of the company's stock in the secondary market through the "Hengtong Optic-Electric Employee Incentive Service Trust," accounting for approximately 0.08% of the company's total share capital, at an average purchase price of RMB 58.2354 per share, using a total of RMB 107,811,142, including interest income, etc. This matter has been completed and is an employee incentive arrangement, not a direct increase in holdings by the controlling shareholder or directors, supervisors and senior management.

4.5 Release of Pledge and Re-Pledge of Certain Shares by Controlling Shareholder

As of the disclosure date of the relevant announcement, the controlling shareholder Hengtong Group held 593,765,498 shares of the company, accounting for 24.07% of the company's total share capital; cumulatively pledged shares were 326,650,000 shares, accounting for 55.01% of its shareholding and 13.24% of the company's total share capital. On August 20, 2026, Hengtong Group released the pledge of 30 million unrestricted tradable shares, and the relevant pledge release procedures were completed on August 21, 2026. The announcement involves subsequent pledge arrangements, but the specific breakdown data of new pledges disclosed is incomplete, and the original Shanghai Stock Exchange announcement and pledge registration details shall prevail.

4.6 Marine Energy Project Bid Wins and Signings

The company disclosed on August 27, 2026 recent bid wins and signings of domestic and overseas marine energy projects, totaling approximately RMB 1.831 billion, involving domestic and overseas offshore wind power, submarine cables and accessories, offshore major component replacement, operation and maintenance, wind turbine installation, and hoses and accessories businesses. The project amount accounts for approximately 2.74% of the company's audited 2025 operating revenue, and the company expects project performance to have a certain positive impact on future operating performance. Some projects have not yet fully signed formal contracts, and performance may be affected by natural disasters, macro environment and customer factors, and RMB 1.831 billion is not equivalent to revenue recognized in the current period.

4.7 Progress on Spin-Off of Hengtong Huahai for Listing on STAR Market

The company plans to spin off its controlling subsidiary Jiangsu Hengtong Huahai Technology Co., Ltd. for listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The company held a board meeting on May 29, 2026 to review the spin-off plan, and disclosed a progress announcement on the inquiry results of insider trading of company shares on July 21, 2026. As of September 9, 2026, no announcement has been retrieved showing that the matter has been formally accepted by the Shanghai Stock Exchange, approved through review, registered by the CSRC, or completed issuance and listing, and subsequent progress and timing are uncertain.

4.8 Additional 2026 Daily Related-Party Transaction Estimates

The company announced on August 27, 2026 an additional estimated amount of RMB 722.50 million for 2026 daily related-party transactions. This mainly includes purchasing goods or receiving services from related parties, selling goods or providing services to related parties, and housing leasing, etc., of which the newly estimated amount for purchasing goods or receiving services related to Jiangsu Hengtong Intelligent Equipment Co., Ltd. is RMB 349 million, the newly estimated amount for selling goods or providing services related to Xi'an Xigu Optical Communications Co., Ltd. is RMB 150 million, the newly estimated amount for selling goods or providing services related to Jiangsu Huamai Optoelectronic Technology Co., Ltd. is RMB 100 million, and the newly estimated amount for selling goods or providing services related to Hengtong Group and its subsidiaries is RMB 58 million. After the addition, the estimated scale is approximately RMB 4.690 billion. The company stated that transaction prices are based on market prices, and this matter does not need to be submitted to the shareholders' meeting for review.

4.9 New Copper and Aluminum Futures Hedging Business

The company added 2026 commodity futures hedging business, mainly targeting the risk of price fluctuations in raw materials such as copper and aluminum. The maximum position for copper is 3,500 tons, with maximum margin and premium of RMB 79.50 million; the maximum position for aluminum is 55,000 tons, with maximum margin and premium of RMB 166.473 million; the total maximum position is 58,500 tons, with total maximum margin and premium of RMB 245.973 million. This business is mainly used to reduce the impact of raw material price fluctuations on the cost of cables and other products, but basis, liquidity, operational and margin risks still exist.

4.10 New Guarantees Provided to Controlling Subsidiaries

The company plans to provide new guarantees to controlling subsidiaries, involving RMB 990 million and USD 400 million, with the guarantee validity period being 2026. Specifically, these include: RMB 70 million for Hengtong International Engineering Construction Co., Ltd., RMB 20 million for Indonesia Blue Ocean Technology Co., Ltd., USD 400 million for Hengtong High Voltage Submarine Cable Co., Ltd., RMB 700 million for Hengtong Optic-Electric International Co., Ltd., and RMB 200 million for Hengtong Power Smart Grid Technology Co., Ltd. Among the existing guarantee balances disclosed in the announcement, Hengtong High Voltage Submarine Cable Co., Ltd. was RMB 1,574,308,600, and Hengtong Power Smart Grid Technology Co., Ltd. was RMB 713,973,900; the cumulative overdue amount of the company's external guarantees was 0.

4.11 2026 Fourth Extraordinary Shareholders' Meeting Arrangements

The company plans to hold the 2026 fourth extraordinary shareholders' meeting on September 14, 2026, with the record date being September 7, 2026. The meeting plans to review proposals on providing new guarantees to controlling subsidiaries, repurchasing and canceling certain restricted shares under the 2024 restricted stock incentive plan, and proposing to change registered capital, modify business scope and the "Articles of Association," etc. As of September 12, 2026, the shareholders' meeting has not yet been held, and the relevant proposals have not yet formed final voting results.

4.12 Recent Regulatory Matter Search Results

As of September 12, 2026, in searches of recent announcements, regulatory and exchange public information for 600487 and "Hengtong Optic-Electric," no matters such as major administrative penalties, delisting risk warnings, major regulatory measures or public inquiry letters were found against the company. This conclusion is based on Shanghai Stock Exchange announcements and company announcement lists searchable as of September 12, 2026, and does not mean that no new regulatory matters will arise in the future.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Hengtong Optic-Electric's closing price as of September 11, 2026 was RMB 65.24. After experiencing a rapid decline in mid-to-late July and a high-volatility rebound in August, the stock price remains in a wide oscillation range of approximately RMB 60 to RMB 71. The current price is close to MA20, MA50 and the middle-to-upper area of the Bollinger Bands. The short-term technical pattern shows repair after a decline, but MA5, MA10 and MA20 are relatively close, MACD remains near negative territory, and ROC is negative, which is not yet sufficient to confirm a new round of trend-based upward attack. On the upside, focus on the RMB 65.80 to RMB 67.50 pressure zone and the previous high area of RMB 70.40 to RMB 71.30; on the downside, focus on the first support of RMB 63.50 to RMB 64.20 and strong support of RMB 61.80 to RMB 62.30. In terms of capital, recent main force capital has generally been outflowing, and the sustainability of the rebound still needs to be jointly verified by turnover expansion and large-order capital return.

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 closing data as of September 11, 2026, does not constitute investment advice, and is not a single-point price forecast.

① Key Technical Levels

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

• Oscillating consolidation (subjective weight relatively high, approximately 60%; a heuristic weight based on the current technical pattern and capital flows, not a probability in the statistical sense): price range approximately RMB 63.5 to RMB 67.5. Trigger conditions are the stock price holding the RMB 63.5 to RMB 64.2 support but being unable to effectively break above the RMB 65.8 to RMB 67.5 resistance; turnover maintaining approximately RMB 9 billion to RMB 11.5 billion, and the sector not showing a sustained strong trend. This judgment is based on the stock price being near MA20 to MA50, RSI neutral, MACD still negative and recent capital generally outflowing.
• Weaker downside (subjective weight medium; a heuristic weight based on the current technical pattern and capital flows, not a probability in the statistical sense): price range approximately RMB 59.0 to RMB 63.5. Trigger conditions are the stock price closing below RMB 63.5, with turnover expanding but mainly on declines; if it further breaks below the strong support of RMB 61.8 to RMB 62.3, it may open room for retreat toward the Bollinger Band lower track area of RMB 59.0 to RMB 59.5. If during the decline turnover rapidly expands to above RMB 12 billion and main force capital continues significant net outflow, attention should be paid to high-volatility downside breakout risk.
• Rebound strengthening (subjective weight low to medium; a heuristic weight based on the current technical pattern and capital flows, not a probability in the statistical sense): price range approximately RMB 67.5 to RMB 71.3. Trigger conditions are the stock price effectively breaking above RMB 65.8 to RMB 66.5 and holding above RMB 67.5 with volume, while the communications sector remains strong, single-day turnover reaches approximately RMB 12 billion to RMB 13 billion or more and main force capital turns to net inflow. If it further breaks above RMB 68.7 and approaches the previous high of RMB 71.3, observe whether there is a spike with volume stagnation, and there may still be relatively strong selling pressure near RMB 71.

③ Capital and Liquidity Background

Recent turnover rate is approximately 5.7% to 8.9%, average turnover rate over the past 5 days is approximately 6.7%, and daily turnover is approximately RMB 8.9 billion to RMB 14.5 billion; as of September 11, 2026, single-day turnover was RMB 10.902 billion, volume was approximately 170 million shares, and average volume over the past 3 months was approximately 203 million shares. The company is a large-cap stock with active trading, and generally does not have obvious liquidity depletion problems in the sense of small-cap stocks, but recent price volatility has been relatively large, short-term chips have been relatively fully exchanged, intraday slippage risk is relatively limited, and the price volatility risk from chasing rises and dumping declines is relatively high. The latest available shareholder structure data is as of June 30, 2026: the top ten circulating shareholders collectively held approximately 37.93%, institutions collectively held approximately 42.27%, of which funds held approximately 14.29%, Hong Kong Securities Clearing Company Limited held approximately 1.97%; controlling shareholder Hengtong Group Co., Ltd. and actual controller Cui Genliang collectively held approximately 27.94%. The number of shareholder accounts was 590,607, an increase of 165.65% from March 31, 2026, indicating a significant increase in chip dispersion at the end of the second quarter. The above shareholder structure and institutional holdings data are at least more than two months stale and may have changed due to the rapid rise and sharp volatility from July to September 2026, and cannot represent the real-time chip structure as of September 11, 2026.

If in the coming week single-day turnover continuously reaches approximately RMB 12 billion to RMB 13 billion or more, and the closing price stands above the RMB 66.5 to RMB 67.5 range, with main force capital simultaneously turning to net inflow, this can be regarded as the rebound strengthening gaining volume support; if turnover is below RMB 9 billion and the stock price breaks below RMB 63.5, rebound momentum may weaken.

④ Points of Attention (Only Observation Ideas, Not Operational Instructions)

• Observe whether the RMB 65.8 to RMB 67.5 resistance zone can gain turnover expansion support and be effectively broken above; this observation does not constitute a buy or sell instruction.
• Observe whether the RMB 63.5 to RMB 64.2 first support zone shows stabilization on reduced volume; this observation does not constitute a buy or sell instruction.
• If it breaks below the strong support of RMB 61.8 to RMB 62.3, pay attention to the Bollinger Band lower track area of RMB 59.1 to RMB 59.5; this observation does not constitute a buy or sell instruction.
• Observe whether single-day turnover can continuously reach approximately RMB 12 billion to RMB 13 billion or more, and appear simultaneously with main force capital net inflow; the above are all observation ideas, not operational instructions.

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

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The industry in which Hengtong Optic-Electric operates covers optical fiber cables, submarine optical cable communications, offshore wind power submarine cables, power cables and related engineering services. Industry competition barriers mainly come from optical fiber preform processes, rod-fiber-cable integration capabilities, operator centralized procurement certification, global delivery and localized capacity, as well as submarine cable system integration, engineering construction, equipment and long-term reliability capabilities.

6.2 Competitive Landscape

• The optical fiber cable industry has relatively high concentration, with major enterprises including YOFC, Hengtong Optic-Electric, ZTT, FiberHome and Futong Group companies. Ordinary single-mode optical fibers and cables have strong operator centralized procurement attributes, with obvious price and share competition.
• Products such as AI data centers, 800G and above high-speed interconnection, multi-core optical fibers, hollow-core optical fibers and G.654 series low-loss optical fibers have relatively higher technical value-added and growth potential.
• Transoceanic submarine optical cable communication systems belong to a market segment with relatively high technical and delivery barriers, with competition focused on technology, system integration, sea trial certification, engineering delivery, global operation and maintenance and long-term reliability.
• Hengtong entered the transoceanic submarine communication system market through controlling HMN Tech, and the research notes state that it is one of the few Chinese enterprises with comprehensive delivery capability for transoceanic submarine cable systems; the company's disclosed capability to work stably at 8,000-meter water depth for 25 years and experience in 10,000-kilometer-class system projects are product and project capability indicators, not equivalent to having formed sustained revenue or profit of the same scale.
• The offshore wind power and submarine cable industry is driven by offshore wind power construction, marine oil and gas, cross-sea interconnection and deep-sea development, with barriers including high voltage level certification, long-length manufacturing, laying vessels, offshore construction, project management and engineering reliability.
• The offshore wind power business has project-based characteristics, and revenue recognition and profit release are greatly affected by project progress. Hengtong has formed comprehensive capabilities from submarine cable R&D and manufacturing, transportation, laying, rock-socketed piling, wind turbine installation to wind farm operation and maintenance.
• In 2025, the company did not disclose total production capacity on a unified basis for optical preforms, optical fibers, optical cables, submarine cables and high-voltage cables, and different subsidiaries, different projects or third-party estimates cannot be simply added together.

6.3 Major Competitors

Compared with YOFC, Hengtong Optic-Electric's business is more diversified; compared with ZTT, it has characteristics in transoceanic submarine communications, global industrial bases and comprehensive engineering services; compared with FiberHome, it is more oriented toward cable manufacturing and energy interconnection engineering; compared with Orient Cable, its submarine cable business is less pure but its business portfolio is broader; Tongding Interconnection mainly constitutes segmented competition in ordinary optical fiber cables and communications cables. Overall, Hengtong's advantage lies in its comprehensive layout across communications, power, marine and engineering services, but its overall profitability level is still dragged down by low-margin large-volume businesses such as copper conductors.

7. Risk Warnings

• There is sustainability risk in the high growth and high gross margin of optical communications. In the first half of 2026, optical communications business revenue grew by more than 130% year-on-year, with related business gross margin exceeding 60%, but the company's 2025 optical communications revenue was only RMB 5.609 billion, accounting for approximately 8.4% of consolidated revenue; if AI data center capital expenditures slow, optical fiber product prices fall or operator centralized procurement competition intensifies, performance growth and profit margins may be lower than current expectations.
• The business structure has a relatively high proportion of low-margin copper conductors, which may continue to drag down overall profitability. In 2025, copper conductor revenue was RMB 20.084 billion, accounting for approximately 30.0% of operating revenue, up 33.83% year-on-year, but gross margin was only 1.45%; raw materials accounted for 99.11% of the cost of this business, and the company does not own upstream resources such as copper mines, lacking substantive pricing power over copper prices and processing fees, and copper and aluminum price fluctuations or poor cost transmission may compress profits.
• There is pressure on operating cash flow and working capital. As of the end of 2025, accounts receivable were approximately RMB 17.375 billion, equivalent to approximately 26.0% of 2025 operating revenue, and net cash flow from operating activities in the first half of 2026 was -RMB 865 million; payment terms and project collection节奏 of power grid, communications operators, offshore engineering and large industrial customers may cause profit growth to fail to convert into cash flow simultaneously.
• Marine energy projects face uncertainty in delivery, revenue recognition and collection. Recently won and signed projects amount to approximately RMB 1.831 billion, but some projects have not yet fully signed formal contracts, and revenue recognition depends on project performance progress; natural disasters, macro environment, customer factors, overseas certification, exchange rates and engineering performance may all affect project progress and profit release.
• The scale of guarantees provided by the company to controlling subsidiaries is relatively large. New guarantees planned for 2026 involve RMB 990 million and USD 40 million, and among existing guarantee balances, Hengtong High Voltage Submarine Cable Co., Ltd. was RMB 1.574 billion and Hengtong Power Smart Grid Technology Co., Ltd. was RMB 714 million; currently the cumulative overdue amount of external guarantees is 0, but if the operations or project collections of the relevant subsidiaries fall short of expectations, it may increase the company's contingent liabilities and funding pressure.
• The company's new copper and aluminum futures hedging business still has basis, liquidity, operational and margin risks. The total maximum position of the new business is 58,500 tons, with maximum margin and premium of RMB 246 million. Although hedging is used to reduce the impact of raw material price fluctuations, the actual effect may not fully match spot operating needs.
• Valuation and market expectations are relatively sensitive to the realization of high growth. As of September 11, 2026, the stock price was RMB 65.24, with a dynamic P/E ratio of approximately 38.4x; based on institutional consensus expectations, the corresponding P/E ratios for 2026-2028 are approximately 21.9x, 17.9x and 14.7x. If optical communications business growth, product prices or AI capital expenditures fall short of expectations, downward revisions to earnings forecasts may bring valuation pressure.
• The stock price remains in a high-volatility oscillating state in the short term. As of September 11, 2026, the stock price has not effectively broken above the RMB 65.80 to RMB 67.50 resistance zone, MACD is near negative territory, and main force capital has cumulatively net outflowed approximately RMB 5.395 billion over the past 10 days; if it loses the RMB 61.80 to RMB 62.30 area, technically it may further retreat to the approximately RMB 59.1 to RMB 59.5 area, and market volatility risk may amplify.

8. Conclusion and Outlook

The company's core growth logic has gradually shifted from scale expansion in traditional cable and material businesses to the ramp-up of high value-added businesses such as optical communications, specialty optical fibers, submarine communications and marine energy. First-half 2026 performance shows that volume-price improvement and profit margin enhancement in the optical communications business have already significantly driven the company's overall profitability; if AI data center capital expenditures, optical fiber product prices and demand for high-end products continue, institutional average forecasts for net profit attributable to parent for 2026-2028 are RMB 7.335 billion, RMB 8.976 billion and RMB 10.953 billion. The above forecasts are institutional research report data, and actual realization still depends on prosperity and business delivery.

The company's medium- to long-term profitability improvement still needs to satisfy multiple conditions simultaneously, including sustained growth in high-margin optical communications business, on-time delivery of marine energy engineering projects, improvement in overseas localized capacity utilization, and a decline in the proportion of low-margin businesses such as copper conductors. In 2025, the company's overall gross margin had already fallen from approximately 13.21% in 2024 to approximately 12.46%, and net margin attributable to parent fell to approximately 4.01%; therefore, relying solely on revenue growth is not sufficient to guarantee profit margin improvement, and changes in business structure and cash flow quality are more critical.

The company's net cash flow from operating activities in the first half of 2026 was -RMB 865 million, significantly weaker than the profit growth in the same period; in 2025, net cash flow from operating activities was RMB 2.808 billion, down 13.93% year-on-year. Going forward, attention should be paid to whether the high growth of optical communications can be converted into stable cash flow, collection and performance progress of marine energy projects, the effect of raw material hedging and changes in guarantee scale. Technically, RMB 65.80 to RMB 67.50 is the short-term pressure zone, and RMB 63.50 to RMB 64.20 and RMB 61.80 to RMB 62.30 are the downside observation zones, but the relevant ranges only reflect existing technical data and do not constitute buy or sell recommendations.

Data Sources

• List of Main Board Listed Companies of the Shanghai Stock Exchange
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: 2025 Annual Report Summary Sina Finance_Sina.com
• Jiangsu Hengtong Optic-Electric Co., Ltd. 2025 Annual Report
• Hengtong Optic-Electric (600487) Financial Indicators_Sina Finance_Sina.com
• Orient Cable (603606)_Company Announcements_Orient Cable: 2025 Annual Report Sina Finance_Sina.com
• Yangtze Optical Fibre and Cable Joint Stock Limited Company 2025 Annual Report
• Jiangsu Zhongtian Technology Co., Ltd. 2025 Annual Report
• FiberHome Telecommunication Technologies Co., Ltd. 2025 Annual Report
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: 2026 Semi-Annual Report Summary Sina Finance_Sina.com
• Hengtong Optic-Electric (600487) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Institutional Rating | Huatai Securities Gives Hengtong Optic-Electric a "Buy" Rating
• Hengtong Optic-Electric (600487) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Research Report Indicator Express-Research Reports-Stock Channel-Securities Star
• Hengtong Optic-Electric (600487) Stock Historical Data: Historical Quotes, Prices, Trend Charts_Investing.com
• Hengtong Optic-Electric (600487)_Stock Quotes, Quotes Homepage_CFI.cn
• Hengtong Optic-Electric 65.24 +2.08%(1.33) Stock Price-Quotes-Trend Chart-Quotes-JRJ.com
• Hengtong Optic-Electric (600487) Latest Stock Price Quotes, Real-Time Trend Chart, Stock Price Analysis Forecast_Investing.com
• https://www.htgd.com.cn/rcfz/gsjj.html?utm_source=openai
• Hengtong Optic-Electric (600487) Announcements (All) - Lixinger
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: 2026 Semi-Annual Earnings Pre-Increase Announcement Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Convening the 2026 Semi-Annual Earnings Briefing Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Stock Incentive Plan Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Completion of the 2025 Annual Reward Fund Purchasing Company Shares Through Trust Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Release of Pledge and Pledge of Certain Shares by Controlling Shareholder Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: 2026 Semi-Annual Report Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Winning Marine Energy Projects Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Progress of Inquiry Results on Insider Trading of Company Shares in Relation to the Spin-Off and Listing of a Subsidiary on the STAR Market Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on Additional 2026 Daily Related-Party Transaction Estimates Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on New Commodity Futures Hedging Business Related to Daily Operating and Production Business for 2026 Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Announcement on New Guarantees Provided to Controlling Subsidiaries Sina Finance_Sina.com
• Hengtong Optic-Electric (600487)_Company Announcements_Hengtong Optic-Electric: Meeting Materials for the 2026 Fourth Extraordinary Shareholders' Meeting Sina Finance_Sina.com

This report was automatically retrieved, compiled and generated by AI based on public channel information, with information as of the close on September 11, 2026; September 12, 2026 is a Saturday, with no A-share trading. Technical indicators mainly reference public technical indicator pages and approximate historical closing price verification as of September 11, 2026. Indicators may differ slightly across platforms due to different adjustment methods, calculation timing, moving average conventions and data refresh times. There may be timeliness differences, and specific data should be subject to the company's formal announcements and authoritative data terminals. This report is only for information compilation and research reference, does not constitute any investment advice, and investors should make independent judgments and bear investment risks themselves.