Hengtong Optic-Elec H net income 1.61B yuan

Hengtong Optic-Elec H net income 1.61B yuan

Hengtong Optic-Elec, a leading provider of optical and electronic components, reported its financial results for the second quarter of 2025. The company posted adjusted earnings per share (EPS) of CNY4.24, surpassing the mean expectation of analysts by CNY0.28 per share. This quarter's EPS was higher than the same period last year, when the company reported EPS of CNY3.88 [1].

Revenue for the quarter ended June 30, 2025, rose by 4.5% to CNY6.43 billion, exceeding the analysts' expectations of CNY6.30 billion. The company's reported quarterly net income was CNY1.54 billion, an increase of 10.6% year-over-year. This robust performance was driven by strong demand for optical components, particularly in the telecommunication sector.

Hengtong Optic-Elec's shares experienced a decline of 1.7% during the quarter, but have gained 1.0% year-to-date. The company's stock has outperformed the broader market, with the median 12-month price target set at $42.00, a 20.6% increase from its last closing price of $33.35. Analysts remain optimistic, with a consensus recommendation of "buy" and no "sell" or "strong sell" ratings [1].

Despite the positive results, the company has faced challenges in the past, with earnings missing expectations in the first quarter of 2025 and the fourth quarter of 2024. However, the latest quarterly report suggests that Hengtong Optic-Elec is on track to recover from these setbacks and maintain its growth trajectory.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UC0UO:0-h-world-group-ltd-reports-results-for-the-quarter-ended-june-30-earnings-summary/