Changchuan Technology 2026 Q3 Report: Q3 Net Profit 801 Million Yuan, Up 82.73% YoY; Operating Cash Flow Up More Than 11-Fold

On the evening of October 26, Changchuan Technology (300604.SZ) disclosed its 2026 third-quarter report: in the third quarter, it achieved operating revenue of 2.481 billion yuan, up 53.93% year on year and 19.17% quarter on quarter; net profit attributable to shareholders of the parent company was 801 million yuan, up 82.73% year on year and 31.08% quarter on quarter—quarterly profit exceeded the 800 million yuan mark for the first time. In the first three quarters, cumulative operating revenue was 5.942 billion yuan, up 57.25% year on year; net profit attributable to shareholders of the parent company was 1.765 billion yuan, up 103.92% year on year; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was 1.717 billion yuan, up 117.71% year on year.

At the same time, the company announced a plan to repurchase shares for 50 million to 100 million yuan, to be used for equity incentives or an employee stock ownership plan. With profit doubling, ample orders, and a genuine cash repurchase, this third-quarter report uses three sets of figures to complete a "triple confirmation" of fundamentals, profit quality, and shareholder returns.

Revenue has expanded quarter on quarter for three consecutive quarters, and the net profit margin has risen in tandem with scale—the Q3 single-quarter net profit margin was about 32.3%, continuing to rise from the overall level for the first three quarters (about 30%). This means that rapid revenue growth has not come at the expense of profitability; instead, it has shown a positive cycle characterized by "the larger the scale, the stronger the profitability."

Profit quality also withstands scrutiny under a magnifying glass: Q3 non-recurring gains and losses were only about 6.1366 million yuan, and net profit after deducting non-recurring gains and losses was 795 million yuan (up 84.26% year on year and 33.25% quarter on quarter), with the deducted basis accounting for more than 99% of net profit attributable to shareholders of the parent company—not a single cent of the profit surge came from government subsidies or investment income "watering down" the figures; it was all created by the core business. In addition, net cash flow from operating activities in the first three quarters was 1.039 billion yuan, surging 1114.71% year on year, with sales collections greatly improved, achieving simultaneous verification of the "cash content" and "gold content" of revenue.

The "qualitative change" in profitability: a rare sample among equipment companies behind a 30% net profit margin

More important than the profit figures is the shift in profit margins. In the first three quarters, the company's gross profit margin was about 55.81%, up 1.33 percentage points year on year; the net profit margin was about 30.02%, up 7.16 percentage points from 22.86% in the same period last year.

These figures are rare among A-share equipment companies. A gross profit margin of more than 55% is already comparable to the level of international testing equipment leaders, reflecting the continued migration of the product mix toward high-end testers; and the 30% net profit margin breaks the market's stereotype that "semiconductor equipment companies find it hard to increase profit while increasing revenue"—with revenue expanding by nearly 60% year on year, the gross profit margin rose rather than fell, indicating that the share of high-gross-margin products is increasing, economies of scale are being released, and cost and expense control is taking effect, with all three resonating in the same direction. The company also explicitly stated in the report that "cost and expense control was appropriate."

Changchuan Technology is one of the few platform-type domestic manufacturers in back-end testing equipment that simultaneously covers testers, handlers, and probe stations, with customers covering leading domestic packaging and testing plants as well as memory and logic wafer fabs. The industrial logic behind this round of performance explosion is clear and strong:

First, AI chips are redefining "testing intensity." The pin count, test items, and test duration of AI accelerator cards and high-performance SoCs are multiples of those of traditional chips, significantly increasing the testing value per unit of equipment—the pull of the AI wave on testing equipment is not "more equipment," but "more expensive, higher-end equipment."

Second, memory capacity expansion opens a second battlefield. Capacity expansion by domestic memory manufacturers and the advancement of HBM localization are bringing new demand for testers and handlers; memory testing is the traditional stronghold of Advantest and Teradyne, where the localization penetration rate remains low and the room for substitution is enormous.

Third, the "equipment autonomy" link in domestic substitution. Against the backdrop of restrictions on advanced-process equipment, independent controllability of back-end testing equipment has become a key piece of the puzzle in domestic production line construction, and Changchuan's high-end testers are in a critical period of volume ramp-up and verification.

The company's statement in its performance interpretation was direct and forceful: "Customer demand is strong, and product orders are ample." Judging from the financial statements, this statement is backed by both cash flow and gross profit margin, and is not empty talk to comfort the market.

The signal theory of the repurchase: the upper limit of 250 yuan and the distance from a "halved" share price

The repurchase plan announced simultaneously with the performance release deserves special interpretation: it plans to repurchase shares with 50 million to 100 million yuan of its own or self-raised funds, at a maximum price of 250 yuan per share, to be used for equity incentives or an employee stock ownership plan, with a term of 12 months.

Two details are intriguing: first, the upper limit of 250 yuan for the repurchase price leaves ample room relative to the current share price, making management's judgment of the value range immediately clear; second, the repurchased shares are earmarked for equity incentives and employee stock ownership rather than cancellation to support the price—the company is directing real money toward binding the core team, conveying confidence in long-term orders and technological iteration, which forms a closed loop of the same logic as the operating statement that "customer demand is strong and orders are ample."

Market divergence: how to view the disconnect between record-high performance and a falling share price?

An objective fact is that despite performance hitting new highs repeatedly, the company's share price has fallen significantly from its intra-year high. This divergence of "fundamentals up, share price down" is essentially valuation digestion and expectation gaming after a large rally—the sustainability of high growth and the volatility of AI capital expenditure form the core of the bull-bear divergence.

But the third-quarter report provides three counterarguments: first, revenue has continued to accelerate quarter on quarter, with no sign of demand being front-loaded; second, the net profit margin and cash flow are rising simultaneously, so there is no hidden risk of "trading profit for revenue"; third, with ample orders plus the launch of the repurchase, the company is backing with actions the visibility of demand for the fourth quarter and next year. For growth stocks, valuation can be debated, but the "acceleration" in the financial statements is hard to fake—when market divergence focuses on "how fast can it be next year," Changchuan's answer is: the quarter-on-quarter growth rate this quarter is still rising.

Conclusion

The weight of this third-quarter report can be condensed into three progressive confirmations: performance confirmation—quarterly profit exceeded 800 million yuan for the first time, with full-year doubling in sight; quality confirmation—a 55% gross profit margin, a 30% net profit margin, and more than 1 billion yuan in operating cash flow, leaving profit quality beyond reproach; confidence confirmation—the operating statement of ample orders and the repurchase plan with an upper limit of 250 yuan landed on the same day. At the intersection of the dual prosperity of AI testing and memory localization, Changchuan Technology is in a positive flywheel of "product upgrading—profit leap—reinvestment in R&D." The market may still be arguing over valuation, but the industry trend has already been written clearly in the financial statements.