Time Interconnect Technology (1729) investor relations material

Executive summary

• Revenue for H1 2026 surged 107.4% year-over-year to HK$10,066.1 million, driven by acquisitions and strong AI-related demand in server and data centre segments.

• Net profit rose 163.9% to HK$827.8 million, with adjusted profit at HK$830.7 million, reflecting robust operational performance and successful integration of new businesses.

• Major acquisitions included DJC Group (copper wire) and full ownership of Time Singapore and Leoni Kabel/LCS Group, expanding global reach and vertical integration.

• Two equity placings raised HK$4,519.0 million, strengthening the balance sheet and supporting global expansion.

• Over 50% of revenue is now AI-driven, with significant growth in data centre fibre cable assemblies, high-speed cables, and servers.

Financial highlights

• Revenue: HK$10,066.1 million (+107.4% YoY); Gross profit: HK$1,263.3 million (+96.5% YoY); gross margin declined to 12.6% due to lower-margin copper wire segment.

• Net profit: HK$827.8 million (+163.9% YoY); Adjusted net profit: HK$830.7 million (+164.2% YoY); net profit margin: 8.2% (up from 6.5% YoY); adjusted net profit margin: 8.3%.

• Basic EPS: HK39.5 cents (+145.3% YoY); Adjusted basic EPS: HK39.6 cents (+146.0% YoY).

• EBITDA: HK$1,170.9 million (+127.8% YoY); Adjusted EBITDA: HK$1,173.8 million (+128.1% YoY); EBITDA/revenue: 11.6%; adjusted EBITDA/revenue: 11.7%.

• Interim dividend declared: HK6.0 cents per share (total HK$134.0 million).

Outlook and guidance

• Global growth forecasted at 3.0% in 2026 and 3.4% in 2027, with AI adoption offsetting geopolitical risks.

• Company expects continued growth from AI, data centers, and global expansion, leveraging Luxshare Group support and new product launches.

• AI-driven demand expected to remain strong, especially in emerging markets and data centre infrastructure.

• New Morocco factory and expanded product range (e.g., 800V DC liquid-cooled cables) to drive future growth.