Movement Alert|CIG Rises 5.44% in Regular Trading, H1 Net Profit Surges 171% with Positive Signals from Earnings Call Fueling Rebound

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On August 26, CIG rose 5.44% in regular trading, trading at HK$95.35/share, with turnover of HK$175 million. The stock rebounded following the release of strong H1 results and bullish forward guidance from the company's earnings call.

CIG disclosed its H1 report on August 24, reporting revenue of RMB 2.705 billion, up 32.92% year-over-year, and attributable net profit of RMB 328 million, surging 171.08% from RMB 121 million a year earlier. Gross margin reached 30.77%, expanding approximately 8.8 percentage points, driven primarily by the high-speed optical module business. At the August 25 earnings call, the chairman stated the company aims to achieve annualized optical module capacity of no less than 6 million units within the year, with 1.6T optical modules expected to begin bulk shipments in H2. Production capacity at the Mexico and Malaysia facilities continues to ramp. The board also approved a cash dividend of RMB 0.09 per share for the interim period.

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