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Tianzhun Tech H1 revenue up 48.63% to RMB 887M, wins Foxconn CPO AOI inspection order
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Tianzhun Technology (688003) reported H1 2026 revenue of RMB 887 million, up 48.63% YoY, and net profit of RMB 98 million, up 793.92% YoY, driven by strong growth in AI inspection and manufacturing equipment. The company secured a first batch of online AOI inspection equipment orders from Foxconn Industrial Internet for CPO (Co-Packaged Optics) mass production, opening a new growth avenue in optical communications. In semiconductors, its associate Suzhou Xishi Semiconductor made progress with its TB2000 bright-field inspection tool for 14-28nm nodes delivered to a leading wafer foundry, and a TB1500 tool for 40nm nodes sold for mass production use. New orders in H1 2026 reached RMB 2.104 billion, up 62.20% YoY, with a backlog of RMB 2.375 billion. The report forecasts 2026-2028 revenue of RMB 2.533, 3.346, and 4.202 billion, respectively, with EPS of RMB 0.88, 1.37, and 1.81. Risks include macroeconomic headwinds, R&D delays, competition, and demand weakness. The analyst initiates coverage with a 'Buy' rating.
Source report
Event
TZTEK Technology released its 2026 semi-annual report: In the first half of 2026, the company achieved operating revenue of RMB 887 million, a year-on-year increase of 48.63%; net profit attributable to shareholders of the parent company reached RMB 98 million, up 793.92% year-on-year; and net profit attributable to shareholders excluding non-recurring gains and losses was RMB 10 million, a year-on-year increase of 145.61%.
Key Investment Highlights
Rapid Order Growth and Deepening AI Industry Chain Strategy
In the first half of 2026, the company recorded operating revenue of RMB 887 million, up 48.63% year-on-year, and net profit attributable to shareholders of RMB 98 million, up 793.92% year-on-year. Breakdown by segment:
- AI Measurement & Inspection Equipment: Revenue of RMB 375 million, up 28.85% year-on-year
- AI Process Equipment: Revenue of RMB 355 million, up 47.31% year-on-year
- Embodied Brain Solutions: Revenue of RMB 158 million, up 141.60% year-on-year
New orders signed in the first half of 2026 totaled RMB 2.104 billion (including tax), a year-on-year increase of 62.20%. As of June 30, 2026, the company's order backlog stood at RMB 2.375 billion, up 49.61% year-on-year.
CPO Online AOI Inspection Equipment Orders Secured; Optical Communications Opens New Growth Space for Measurement & Inspection Equipment
With the proliferation of 1.6T and 3.2T high-speed optical modules and the industrialization of CPO (Co-Packaged Optics) technology, requirements for dimensional accuracy, defect detection, coaxiality, and end-face inspection in optical device coupling, chip mounting, and packaging have increased significantly. Full-process automated high-precision screening is now required in production.
Historically, high-speed optical communication inspection equipment has been dominated by overseas brands, leaving substantial room for domestic substitution. Demand for industrial AI equipment—including precision dimensional measurement, micro-defect identification, and automatic coupling positioning for optical fibers, optical modules, silicon photonic chips, and CPO devices—continues to grow, becoming a new incremental track for the industry.
In the optical communications field, the company provides precision measurement and inspection equipment for 800G, 1.6T, and other optical modules, covering most major customers in the sector. It has long served leading clients such as Zhongji Innolight, Eoptolink, and TFC Communication. In 2026, the company received the first small-batch order for online AOI inspection equipment from Foxconn Industrial Internet for its CPO mass production project. Some equipment has already been delivered to customer sites, opening up incremental market space for measurement and inspection equipment in new optical communication areas such as CPO and NPO.
Semiconductor Business Progresses; Bright-Field Inspection Equipment Achieves Notable Milestones
Driven by both the geopolitical industrial environment and domestic self-sufficiency policies, Chinese wafer foundries have shown a growing willingness to adopt domestic equipment for import substitution. High-end wafer measurement and defect inspection industrial AI equipment, long monopolized by overseas brands, now faces a clear window for domestic replacement.
The company's investee, Suzhou Xixing Semiconductor, has made significant progress across its product lines:
- TB2000 Bright-Field Inspection Equipment (for 14–28nm process nodes): Delivered to a leading wafer foundry for trial use
- TB1500 Bright-Field Inspection Equipment (for 40nm process nodes): The first unit sold commercially is now being used as an online yield control device in customer mass production
- TB1100 Bright-Field Inspection Equipment (for 65nm process nodes): Delivered to additional customers for trial use
Earnings Forecast
The company is projected to achieve revenue of RMB 2.533 billion, RMB 3.346 billion, and RMB 4.202 billion for 2026, 2027, and 2028, respectively. EPS is estimated at RMB 0.88, RMB 1.37, and RMB 1.81 for the same periods. Based on the current stock price, the corresponding P/E ratios are 93x, 60x, and 45x.
TZTEK is deeply rooted in the machine vision and industrial AI equipment sector. Leveraging its strong first-mover technological advantages, the company continues to enrich its high-end product portfolio and expand downstream application tracks, with operating scale growing steadily. This is the first coverage, with a "Buy" investment rating.
Risk Factors
- Macroeconomic risks
- Risk of product R&D falling short of expectations
- Risk of intensified industry competition
- Risk of weaker-than-expected downstream demand
- Risk of production expansion falling short of expectations
Source
华鑫证券Eastern