(Source: Caixin)

In the first half of the year, J&D Group’s net profit grew 5% year-on-year, in line with the earlier earnings guidance. However, the situation that the profit margin in its printed circuit board (PCB) business narrowed was more severe than expected. The first-half PCB business’s contribution to EBITDA fell from 24.5% in the same period last year to 17.3%.

On August 25, Citigroup released a research report saying that for J&D Group (00148.HK), the target price was sharply cut from HK$202 to HK$125. This implies a forecast price-to-earnings ratio of about 12 times for 2027. The “Buy” rating was maintained. However, given the low base and that the earnings growth of J&D Layered Board (01888.HK) (01888) accelerated in July,

Jidao Group’s net profit for the first half of the year grew 5% year-on-year, in line with its prior profit forecast. However, the margin for its printed circuit board (PCB) business narrowed more severely than expected. In the first half of the year, the PCB business’s contribution to EBITDA fell from 24.5% in the same period last year to 17.3%. PCB business EBIT also declined 10.6% year-on-year, mainly attributable to depreciation incurred before new capacity in Vietnam and Thailand ramps up. Citi cut its earnings forecasts for the Group for 2026 to 2028 by up to 4%. It currently estimates that the Group’s profit in the second half of this year will grow 2.3 times year-on-year to RMB 5.99 billion. Among the two, Citi is more optimistic about Jidao’s core printed circuit boards, as it has stronger profit growth momentum and a more straightforward business.