Zhejiang Double Arrow Rubber Co Ltd

Double Arrow Rubber released its 2026 interim report. Total operating revenue was 1.241 billion yuan, down 6.93% year on year. Net profit attributable to the parent company was 17.3856 million yuan, a decline of 60.41% from the same period last year. Net cash inflow from operating activities was 10.0567 million yuan, down 62.71% year on year. The company's latest asset-liability ratio was 45.00%, gross margin was 12.89%, return on equity was 0.82%, and diluted earnings per share was 0.04 yuan. The number of shareholders was 20,100, and the top ten shareholders held 45.00% of total share capital.

Double Arrow Rubber disclosed its earnings forecast, estimating attributable net profit for the first half of 2026 at 14 million to 19 million yuan, a year-on-year decline of 56.74% to 68.12%. Deducted non-recurring net profit is expected to be 4.7 million to 7 million yuan, down 81.83% to 87.8%. Basic earnings per share are projected at 0.03 to 0.05 yuan per share. The company primarily engages in the research, development, production, and sales of rubber conveyor belt products. The change in performance is mainly due to an overall slowdown in demand for rubber conveyor belts, intensified competition within the industry, and rising raw material prices, which have led to a decline in product sales gross margin. Based on the closing price on July 14, Double Arrow Rubber currently has a price-to-earnings ratio of approximately 54.32 to 62 times, a price-to-book ratio of about 1.04 times, and a price-to-sales ratio of around 0.84 times.