Amlogic Shanghai Co Ltd

Amlogic released its 2026 interim report. First-half net profit attributable to the parent was 611 million yuan, up 23.0% year on year. Operating revenue was 4.39 billion yuan, up 31.9% year on year. Net profit attributable to the parent after deducting non-recurring items was 560 million yuan, up 22.6% year on year. Net operating cash flow was negative 502 million yuan, an improvement of 20.6% year on year. Second-quarter operating revenue was 2.5 billion yuan, up 38.6% year on year, and net profit attributable to the parent was 438 million yuan, up 41.9% year on year. The company said its TV SoC chip market share has risen steadily, shipments grew nearly 30% year on year, and its high-end product series continued to accelerate adoption by leading end customers.

Over the past week, STAR Market companies have been sending a flurry of positive signals. More than 30 companies announced new share buyback plans or progress updates, over 20 disclosed their 2026 half-year earnings forecasts with most reporting upbeat results, and several others signed major contracts or revealed R&D breakthroughs. The semiconductor supply chain is showing a cluster of strong performances. Puya Semiconductor expects first-half net profit attributable to the parent of about 825 million yuan, a more than 19-fold increase year-on-year. Dosilicon expects between 640 million and 680 million yuan, swinging from a loss to a profit. Yuanjie Technology expects net profit attributable to the parent of 600 million to 650 million yuan, up about 12-fold. Lianxun Instruments expects 510 million to 580 million yuan, up over 8-fold. Amlogic expects about 608 million yuan, up 22 percent. China Micro Semicon expects about 165 million yuan, up 91 percent, covering segments from memory and optical chips to SoCs. In biopharma, OPM Biosciences expects revenue of about 450 million yuan, up roughly 1.5 times, and net profit attributable to the parent of about 124 million yuan, up around 229 percent. In new energy and new materials, Minmetals New Energy and Oulai New Materials both expect to swing from losses to profits in net profit attributable to the parent. In the low-altitude economy, AVIC UAS expects revenue of 1.58 billion to 1.68 billion yuan, a more than 2.6-fold increase. On the buyback front, Montage Technology plans to repurchase 300 million to 600 million yuan worth of shares. Kingsoft Office has set a buyback cap of 500 million yuan and has already repurchased about 75 million yuan. Segway-Ninebot has cumulatively repurchased about 220 million yuan. Hoymiles Power Electronics' buyback ratio has exceeded 1 percent. Baimtec Material completed about 100 million yuan in buybacks using over-raised funds. Wasion Information completed 50 million yuan in buybacks. Controlling shareholders of Puya Semiconductor and Biwin Storage have proactively proposed buybacks. Market participants say the intensive buybacks and positive earnings forecasts reflect the growing quality of hard-tech companies and the accelerating release of industrial clustering effects.

In early trading on July 24, the on-device AI concept was active, with Bocom Integrated Circuit surging to its daily limit up, while Actions Technology, Amlogic, and Rockchip were among the top gainers. On the news front, the Cyberspace Administration of China recently released the filing information for seven generative AI services designed for mobile on-device use. Related features from seven leading handset makers—Xiaomi, Huawei, OPPO, vivo, Apple, Samsung, and Nubia—have all passed official compliance reviews. A research note from Soochow Securities analyzed that competition in mobile AI is shifting from feature stacking to a system-level agent phase. As on-device AI evolves toward multimodal perception and system-level intelligent agents, on-device and cloud collaboration is expected to become the main path, continuously driving upgrades in computing power, storage, connectivity, power consumption, and heat dissipation for smartphones, AI glasses, and wearables. On-device hardware is likely to enter a new upgrade cycle. A Huatai Securities research note argued that the connectivity dividend of the 5G era drove volume and price increases for components like radio frequency, and AI terminal innovation may replicate this upgrade path, reshaping the value of chips, storage, heat dissipation, batteries, and radio frequency components.

Amlogic has disclosed its earnings forecast, estimating that net profit attributable to owners of the parent company for the first half of 2026 will be approximately 608 million yuan, representing a year-on-year increase of around 22.44 percent. Net profit for the second quarter is expected to be about 435 million yuan, up roughly 40.98 percent year-on-year and approximately 151.02 percent quarter-on-quarter. The company's main products continued to see volume growth, with its TV SoC chip market share steadily increasing and the introduction of high-end products accelerating. It also made reasonable adjustments to the pricing of its entire product line, achieving growth in both volume and price.