Eoptink 2026H1 rev ¥20.91B (+100%), net profit ¥7.53B (+91%). Optical interconnect GM 48.46%. But inventory+receivables surged ~¥7.5B, nearly equaling H1 net profit. OCF only ¥1.62B (cash conversion 0.21x). Growth comes with heavy working capital strain.
XAC (000768.SZ): Strategic airlift replenishment, military export upside & C919/C929 content drive multi-year earnings escalation. Constructive view hinges on 2027-28 delivery. P/E normalizes from ~52x to ~30x as earnings compound.
Kinwong Electronic (603228 SH): AI + auto dual engine drives inflection. Revenue from AI compute to grow from 25% to 56% by 2028E. New HDI/HLC capacity ramping mid-2026. Initiate with Buy, illustrative target RMB 137.25 (25x 2027E).
Revenue surged +66.52% in 1H26, but attributable net profit grew only +49.69%. The 17-point gap? Two hidden drains: share-based compensation and working-capital buildup that turned operating cash flow deeply negative.
At 49.3x 2026E P/E, Three-Circle prices in both MLCC upturn and SOFC ramp. But near-term MLCC upside relies on consumer displacement, not AI premium; SOFC volumes hinge on Bloom delivery cadence. Track spot prices, capacity, and Bloom quarterly shipments.