The Zhitong Finance App learned that Dahua Jixian released a research report saying that Lansi Technology (06613)'s performance for the third quarter of 2026 fell short of expectations. The bank maintained a “buy” rating, but drastically lowered the target price of H shares from HK$43.1 to HK$21.5.
Lansi Technology (06613)'s third-quarter results fell short of expectations, mainly due to delays in orders to large customers until the fourth quarter, as well as significant exchange losses and rising operating expenses. Revenue fell 8.1% year on year to RMB 19.035 billion, gross margin narrowed 2.3 percentage points year on year to 16.8%, operating profit fell 45.8% year on year to RMB 1,183 million, and net profit fell 50.4% year on year to RMB 843 million, lower than market expectations by about 13.0%, 2.7 percentage points, 56% and 65.8%, respectively.
The bank pointed out that profit growth from the fourth quarter of this year to the first quarter of next year is expected to improve markedly. As orders related to foldable models from large customers were postponed to the fourth quarter and further increased in the first quarter of 2027, customers also adjusted the product cycle from one release in the third quarter to two releases in the third quarter of this year and the first quarter of next year.
The bank drastically lowered Lansi's 2026-2028 profit forecast by 40%, 15.9%, and 7.9% to 2,844 billion yuan, 5.407 billion and 7.876 billion yuan, respectively, reflecting a reduction in smartphone business assumptions and an increase in the ratio of operating expenses related to R&D and talent.