JCET Q3 Report: Single-quarter revenue hits a record high of 11.425 billion yuan, full-year fixed asset investment raised to 17.31 billion yuan

On the evening of October 22, JCET (600584.SH) disclosed its 2026 third-quarter report: during the reporting period, it achieved operating revenue of 11.425 billion yuan, up 13.53% year on year; net profit attributable to shareholders of the listed company of 773 million yuan, up 59.99% year on year; and net profit attributable to shareholders after deducting non-recurring gains and losses of 753 million yuan, up sharply by 117.43% year on year. In particular, its third-quarter operating revenue rose 10.3% quarter on quarter, hitting a record single-quarter high. The highlights of this third-quarter report are no longer just the growth rate itself, but the substantial improvement in earnings quality.

Release of profit elasticity becomes a highlight, with systematic improvement in profitability

Extending the timeline to the first three quarters, JCET achieved operating revenue of 30.952 billion yuan, up 7.96% year on year, a record high for the same period; net profit attributable to shareholders of 1.617 billion yuan, up 69.58% year on year; net profit attributable to shareholders after deducting non-recurring gains and losses of 1.561 billion yuan, up 99.17% year on year, nearly doubling; and net cash flow from operating activities of 4.300 billion yuan, up 16.44% year on year.

The single-quarter revenue growth rate of 13.53% was significantly higher than the cumulative growth rate of 7.96% for the first three quarters, indicating an acceleration on the revenue side in the third quarter; on the profit side, the net profit after deducting non-recurring gains and losses achieved in the third quarter alone accounted for nearly half of the total for the first three quarters, with its operating scale and profitability showing quarter-by-quarter growth. Revenue grew steadily while profit continued to outpace revenue, and profit elasticity became one of the most impressive parts of this third-quarter report.

In terms of growth quality. In the first three quarters, JCET's total profit was 1.739 billion yuan, up 47.20% year on year; operating profit was 1.728 billion yuan, up 45.9% year on year; net profit was 1.589 billion yuan, up 67.1% year on year; and net profit attributable to shareholders was 1.617 billion yuan, up 69.58% year on year. Profit growth was comprehensively faster than the 7.96% revenue growth, and behind this "scissors gap" is a systematic improvement in profitability.

In the report, JCET attributed the growth to two aspects: first, benefiting from the rapid growth in demand in AI-related infrastructure and edge-side fields, the obvious trend of domestic semiconductor substitution, and the continued improvement in the prosperity of the global semiconductor industry, the company focused on its main production business, strengthened market expansion, accelerated capacity expansion, saw continuous growth in customer orders, operated at high capacity utilization, and continued to optimize its product structure and business portfolio, with an increase in high-value-added products; second, it continued to strengthen operational fundamentals and cost control, and through intelligent manufacturing and lean production continuously reduced costs, driving year-on-year growth in gross profit and net profit.

Cash flow performance was also solid. In the first three quarters, net cash flow from operating activities was 4.300 billion yuan, up 16.44% year on year, significantly higher than the net profit level for the period; cash received from sales of goods and provision of services was 30.915 billion yuan, basically comparable to operating revenue, indicating good collection quality. In terms of shareholder returns, JCET's 2026 interim equity distribution was completed on September 24, with total share capital of 1.789 billion shares as the base, a cash dividend of 0.5 yuan per 10 shares (tax included), totaling 89.4707 million yuan.

Jiwei.com believes that what the industry should pay most attention to in this third-quarter report is not the absolute increase in single-quarter profit, but that it reveals an ongoing shift: the profit driver of the packaging and testing leader is moving from "cyclical fluctuations in capacity utilization" to "a structural increase in the share of advanced packaging." However, the degree of completion of the shift still depends on two hard constraints, namely the rhythm of the depreciation cycle and whether high-value-added orders can continue to fill new capacity. Before these two constraints give clearer signals, the "quality" of JCET's profit elasticity is obviously more important than the "quantity."

Turning to "growth certainty," full-year investment raised by more than 17 billion

In the upward earnings cycle, JCET's capacity expansion has clearly accelerated.

The cash flow statement shows that in the first three quarters, cash paid by the company for the purchase and construction of fixed assets, intangible assets and other long-term assets reached 8.891 billion yuan, an increase of about 104% from 4.357 billion yuan in the same period last year. The balance sheet also bears "traces of expansion": as of the end of September, construction in progress was 6.945 billion yuan, up 78.3% from 3.894 billion yuan at the beginning of the year; fixed assets were 26.737 billion yuan, up 13.7% from the beginning of the year; and total assets were 62.249 billion yuan, up 12.13% from the beginning of the year.

Investment intensity is still increasing. JCET's board of directors has reviewed and approved raising the 2026 fixed asset investment plan from 9.98 billion yuan to 17.31 billion yuan. On the basis of simultaneous improvement in revenue, gross margin and net profit after deducting non-recurring gains and losses, JCET substantially raised its fixed asset investment plan, concentrating investment in advanced packaging technology and advanced manufacturing capacity construction. This move shows that it does not regard current growth merely as a short-term cyclical recovery, but is accelerating the conversion of market demand into long-term competitiveness with more aggressive investment.

For the asset-heavy, technology-intensive packaging and testing industry, large-scale new investment usually involves plants, cleanrooms, production equipment, automation systems and supporting capacity construction, and the payback period is also relatively long. Therefore, the substantial upward revision of the annual investment plan also reflects the company's strong confidence in market opportunities, customer demand and its own business undertaking capacity.

Major projects are being implemented simultaneously. On June 24, 2026, JCET's board of directors reviewed and approved a proposal for external investment, planning to invest in and establish a controlled subsidiary to invest in and build a high-end advanced packaging and testing plant in the Wanxiang Industrial Park of "Oriental Chip Port" in Shanghai Lingang, with a total investment of 7.8 billion yuan, and the project is proceeding in an orderly manner.

From the funding perspective, JCET moderately increased debt financing during the reporting period—cash received from borrowings in the first three quarters was 10.769 billion yuan; as of the end of September, short-term borrowings were 3.227 billion yuan, a clear increase from 1.030 billion yuan at the beginning of the year; bonds payable were 4.797 billion yuan, nearly double the 2.398 billion yuan at the beginning of the year; and the asset-liability ratio rose from 43.6% at the beginning of the year to 48.4%. Inventory balance was 6.158 billion yuan, up 61.6% from the beginning of the year, consistent with the characteristics of stocking and production preparation during the capacity ramp-up stage.

For packaging and testing companies, capital expenditure often leads revenue release. JCET's current relatively high-intensity investment is not just expanding traditional capacity, but laying out in advance around high-value-added directions such as high-performance computing, storage, power management and wafer-level packaging, which is expected to open up space for business structure upgrading in the coming years.

Final thoughts: full-year revenue is expected to break through a new threshold

In the first three quarters of this year, JCET's revenue reached 30.95 billion yuan, only about 9.05 billion yuan short of 40 billion yuan. Based on the estimate that third-quarter single-quarter revenue reached 11.43 billion yuan, combined with JCET's quarter-by-quarter growth in revenue and net profit so far this year, and absent obvious changes in industry demand and customer orders, its full-year revenue breaking the 40 billion yuan mark already has a strong realistic basis.

Overall, this third-quarter report outlines JCET's operating picture of "upward prosperity, structural upgrading and capacity expansion" superimposed on three lines: AI intelligent computing infrastructure and edge-side demand are driving rapid growth in the computing electronics segment, and the simultaneous improvement in gross margin and net profit after deducting non-recurring gains and losses shows that profit growth does not rely solely on scale stacking; while doubled capital expenditure, the full-year fixed asset investment plan raised to 17.31 billion yuan, as well as the 6.5 billion yuan private placement and the 7.8 billion yuan Lingang project, indicate its medium- and long-term bet on advanced packaging capacity and its optimism about long-term development.