Eastern Communications Co Ltd B

Eastern Communications announced on August 26 that its operating revenue for the first half of 2026 reached 1.166 billion yuan, up 15.53% year on year. Net profit attributable to shareholders of the listed company was 321 million yuan, up 143.18% year on year.

Eastern Communications released its 2026 interim report. First-half net profit attributable to the parent company was 321 million yuan, up 143.2% year on year. Operating revenue was 1.17 billion yuan, up 15.5% year on year. Net profit attributable to the parent after deducting non-recurring items was 23.11 million yuan, up 790.1% year on year. Net operating cash flow was negative 300 million yuan, down 229.0% year on year. Earnings per share were 0.2554 yuan. In the second quarter, operating revenue was 621 million yuan, up 11.0% year on year. Net profit attributable to the parent was 278 million yuan, up 47.7% year on year. Net profit attributable to the parent after deducting non-recurring items was 12.79 million yuan, down 20.5% year on year. As of the end of the second quarter, total assets were 5.0 billion yuan, up 2.9% from the end of the previous year. Net assets attributable to the parent were 4.029 billion yuan, up 6.7% from the end of the previous year. The company said its main business has not undergone major changes, and it continues to focus on core industries such as information and communications, financial technology, and intelligent manufacturing, with all businesses developing steadily.

Eastern Communications disclosed its earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be 320 million yuan, a year-on-year increase of 142.58 percent. Deducted non-recurring net profit is expected to be 23 million yuan, up 786 percent. The company said the profit growth was mainly due to large investment gains from the disposal of trading financial assets, changes in fair value of trading financial assets held at period-end, and an increase in operating profit. Based on the closing price on July 14, Eastern Communications has a price-to-earnings ratio of about 27.8 times, a price-to-book ratio of about 3.98 times, and a price-to-sales ratio of about 5.9 times. The company's main businesses cover information and communications, financial technology, intelligent manufacturing, and asset management.