Dongguan Mentech Optical & Magnetic Co Ltd

Mentech Optical & Magnetic disclosed its 2026 semi-annual report, with first-half operating revenue of 1.063 billion yuan, up 31.88% year-on-year. Net loss attributable to shareholders of the listed company was 15.394 million yuan, compared with a loss of 73.0387 million yuan in the same period last year, narrowing the loss year-on-year. During the reporting period, overseas orders for the company's magnetic components increased.

Mentech Optical Magnetic announced that the company recently obtained two invention patent certificates issued by the National Intellectual Property Administration, namely "Method, system, optical module and medium for preventing erroneous erasure and writing in optical module data storage area" and "Burst drive and monitoring circuit, method and optical communication equipment based on external modulation".

On the evening of July 31, several listed companies on the Shanghai and Shenzhen stock exchanges issued important positive announcements. Mentech Optical & Magnetic plans to issue shares to specific investors to raise no more than 1.283 billion yuan for projects including intelligent manufacturing of high-speed optical modules. Hongqiao Holdings plans a private placement to raise up to 12 billion yuan for wind power, photovoltaic, and aluminum deep processing projects. GigaDevice plans to repurchase shares worth 1 billion to 2 billion yuan and cancel them to reduce registered capital. Fullhan Microelectronics expects its net profit attributable to the parent company in the first half of 2026 to increase by 1,072.72% to 1,420.19% year-on-year. China National Nuclear Power's Liaoning Zhuanghe nuclear power project Units 1 and 2, and Zhejiang Jinqimen nuclear power project Units 3 and 4, have been approved by the State Council executive meeting. In addition, Southern Network Technology plans to acquire 100% equity of Yueneng Power for 445 million yuan, Shanghai Shineway plans to invest in the industrialization project of solid-liquid hybrid battery cells and solid electrolyte powder, and Inventronics announced that starting September 1, prices of some products will be raised by about 5% to 15% overall.

Mentech Optical Magnetic announced plans to issue shares to specific investors to raise up to 1.283 billion yuan. The funds will be used for a high-speed optical module intelligent manufacturing project, an industrialization construction project for high-speed optical devices and high-end passive components, a high-speed optical chip intelligent manufacturing project, and to supplement working capital.

Mentech Optical Magnetic disclosed its earnings forecast, expecting a net loss attributable to the parent company of 14 million to 18 million yuan in the first half of 2026, compared with a loss of 73.0387 million yuan in the same period last year, a significant narrowing of losses year-on-year. The net loss after deducting non-recurring items is expected to be 20.75 million to 24.75 million yuan, compared with a loss of 77.7865 million yuan in the same period last year. Basic earnings per share are between negative 0.06 yuan and negative 0.08 yuan. The company stated that the synergistic volume growth of its two core businesses, magnetic components and optical communications, the increased proportion of high-value-added products, and significant cost reductions in the supply chain and manufacturing processes are the main reasons for the improved performance. In addition, the charging pile acquisition completed at the end of 2025 is still in the integration phase, with substantial early-stage research and development and certification investments, and the benefits of scale have yet to be realized.

In morning trading on July 10, the three major A-share indices opened mixed. As of press time, the Shanghai Composite Index rose 0.28%, the Shenzhen Component Index gained 0.63%, the ChiNext Index advanced 0.53%, and the STAR Composite Index climbed 1.47%. CPO concept stocks were active, with Xuguang Electronics and Mingpu Optical Magnetic hitting their daily limit up. On the news front, Huawei joined forces with over 20 industry chain partners to launch China's first NPO optical interconnect MSA. The PCB sector surged, with Shenkeda and Maolai Optics among the top gainers. A research report from China Securities pointed out that computing power demand is becoming the most important structural growth driver for the PCB industry. In Hong Kong stocks, the Hang Seng Tech Index rose more than 1%, with Lenovo Group and Baidu Group among the top gainers.