Sifangda Projects 36%-77% Net Profit Growth for H1 2026
Sifangda has announced its financial projections for the first half of 2026, anticipating a net profit attributable to shareholders between 72.5023 million yuan and 94.2529 million yuan. This represents a significant year-over-year increase, estimated to be between 36.24% and 77.11%. The company attributes this projected growth to its overall stable development, leading to simultaneous increases in revenue and profit. A key driver identified is the substantial volume increase in its subsidiary's CVD diamond business segment, which has emerged as a new growth engine. Furthermore, Sifangda continues to implement cost reduction and efficiency improvement initiatives. Based on these projections, the company's net profit for the second quarter of 2026 is expected to range from 30 million yuan to 51 million yuan. Compared to the first quarter's net profit of 43 million yuan, this suggests a sequential decrease in Q2 net profit, projected to be between -31% and 19%.
Sifangda's optimistic forecast for H1 2026, driven by its CVD diamond segment and cost-saving measures, highlights a strategic focus on high-growth areas and operational efficiency. The projected sequential decline in Q2 profit, however, warrants attention, suggesting potential short-term market fluctuations or inventory adjustments within the diamond business. Investors should monitor the sustainability of the CVD diamond segment's growth and the company's ability to manage its cost structure amidst evolving market dynamics. The company's performance will be a case study in navigating the intersection of specialized material production and broader economic cycles in the coming years.
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