On January 29, Dongshan Precision (002384) released its performance forecast for 2017, revealing a significant jump in net profit. The company reported that its net profit attributable to shareholders of listed companies for the year ranged between 51.19 million and 55.52 million yuan, representing an increase of 255% to 285% compared to the previous year. Despite this impressive growth, the actual results were slightly below the initial performance expectations, which raised some concerns among investors.
The company attributed the lower-than-expected results to two main factors: first, delays in the delivery of certain business and products during the fourth quarter of 2017, and second, increased costs due to the ongoing construction of new projects. These challenges impacted the overall profitability, even though the company continued to expand its operations in precision metal and electronics manufacturing.
Dongshan Precision operates in two key sectors: precision metal manufacturing and precision electronics manufacturing. Its metal division includes precision sheet metal and casting products, offering integrated solutions for industries such as mobile communications and automotive. The electronics segment focuses on LED devices, touch modules, FPCs, and other components used in consumer electronics and new energy vehicles. Over the years, the company has built a comprehensive industrial structure, integrating R&D, design, production, and sales. This has allowed it to develop core product clusters such as base station antennas, filters, LED packages, LCMs, TP, and FPCs, strengthening its competitive position in the market.
Meanwhile, Netac Intelligence also announced its performance forecast for 2017, expecting a more modest growth in net profit. The company projected that its net profit attributable to shareholders would range from 770 million to 881 million yuan, reflecting a year-on-year increase of 0.55% to 15.04%. This growth was driven by efforts to enhance R&D, optimize product structures, and expand sales, although rising operating costs and management expenses tempered the overall performance.
In contrast, Tongfang Co., Ltd. faced a major decline in its net profit for 2017. The company reported an expected decrease in net profit ranging from 3.652 billion to 3.952 billion yuan, a drop of 85% to 92% compared to the previous year. The primary reason cited for this decline was the recognition of a large non-recurring income from the disposal of equity stakes in Ziguang Guoxin and Longjiang Environmental Group. However, these asset disposals did not occur in 2017, leading to a mismatch in the reported financial results.
Tongfang’s diverse product portfolio includes commercial and consumer electronics, CNKI knowledge data products, security inspection equipment, military systems, energy-saving solutions, smart city hardware and software, and lighting products. Despite the recent downturn, the company continues to operate across multiple high-growth sectors, positioning itself for future recovery.
As the market closely watches these developments, investors are likely to remain cautious while evaluating the long-term prospects of each company.
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