Zhongtian Technology: 2Q26 is slightly lower than expected due to the pace of revenue recognition, but the outlook for 3Q26 is strong and fiber demand is strong, maintaining positi
Morgan Stanley reported that Zhongtian Technology (600522.SH)'s second-quarter net profit was slightly lower than previously expected due to the pace of revenue recognition, but its third-quarter net profit is expected to accelerate growth driven by strong dem
Morgan Stanley reported that Zhongtian Technology (600522.SH)'s second-quarter net profit was slightly lower than previously expected due to the pace of revenue recognition, but its third-quarter net profit is expected to accelerate growth driven by strong demand for optical fiber, price increases and product structure optimization. The company has completed the delivery of China Mobile's low-price orders in the first half of the year, and the price of new orders will rise sharply in the second half of the year. Currently, optical fiber is in a seller's market. The company adopts customer screening and order prepayment strategies to optimize cash flow and order quality. The market may have overreacted to Zhongtian Technology's slightly lower-than-expected 2Q26 performance, ignoring the strong outlook for 3Q26 and the certainty of improved optical fiber industry prosperity. One sentence conclusion: The slightly lower performance of Zhongtian Technology in 2Q26 is just a matter of the rhythm of revenue recognition, and does not affect the strong growth prospects of 3Q26. The reversal in the prosperity of the optical fiber industry is a deterministic investment opportunity, and the short-term correction is a good buying opportunity. Positive/negative: Positive for Zhongtian Technology (600522.SH). The market may have overreacted to slightly lower-than-expected data for 2Q26, with a short-term correction providing a buying opportunity, and the strong outlook for 3Q26 not yet fully priced in. Catalysts: 1) Zhongtian Technology’s 3Q26 performance, verifying the growth trend; 2) The continued rise in optical fiber prices; 3) The results of fiber optic centralized procurement bidding results for operators such as China Mobile in the second half of the year.