Company Coverage
Huizhou Desay SV (002920 CH): 2Q26: Net Profit Up 22.3% yoy, Beating Our Estimate On Cost Control
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb90.64
Rmb135.00
+48.9%
Rmb150.00
Analyst
Highlights
DSV’s 2Q26 net profit rose 22.3% yoy and 69.7% qoq to Rmb783m, beating our estimate.
Overseas revenue rose 55.7% yoy and is now the only source of group growth.
Growth drivers include over Rmb22b of new annualised orders and the Chengdu and Spanish plants.
We raise 2026 net profit forecast by 3.9% to Rmb2,555m and cut 2027-28 by 4.0%/7.5% respectively.
Maintain BUY and reduce target price from Rmb150.00 to Rmb135.00.
Analysis
2Q26 net profit beat our estimate but missed consensus. Huizhou Desay SV’s (DSV) 2Q26 net profit rose 22.3% yoy/69.7% qoq to Rmb783m. 1H26 net profit of Rmb1,245m accounts for 50.6% of our 2026 forecast (vs 49.8% a year ago), a beat, but made up just 44.1% of 2026 consensus estimate, a miss, on weak revenue.
Revenue missed; cut 2026-28 revenue growth estimates to 5%/12%/12% respectively. Revenue rose 7.0% yoy/29.4% qoq to Rmb8,406m in 2Q26 and 1.75% yoy in 1H26 – this accounts for 39.8% of our Rmb37.44b estimate, vs 45.0% for 1H25. We cut 2026-28 revenue growth estimates from 15%/15%/15% to 5%/12%/12% respectively, resulting in revenue of Rmb34.19b/Rmb38.27b/Rmb42.88b, vs 1H26 revenue of Rmb14,901m. Our new 2026 revenue estimate implies 2H26 revenue of Rmb19,284m, up 8% yoy and 29% hoh.
Highlights
DSV’s 2Q26 net profit rose 22.3% yoy and 69.7% qoq to Rmb783m, beating our estimate.
Overseas revenue rose 55.7% yoy and is now the only source of group growth.
Growth drivers include over Rmb22b of new annualised orders and the Chengdu and Spanish plants.
We raise 2026 net profit forecast by 3.9% to Rmb2,555m and cut 2027-28 by 4.0%/7.5% respectively.
Maintain BUY and reduce target price from Rmb150.00 to Rmb135.00.
Analysis
2Q26 net profit beat our estimate but missed consensus. Huizhou Desay SV’s (DSV) 2Q26 net profit rose 22.3% yoy/69.7% qoq to Rmb783m. 1H26 net profit of Rmb1,245m accounts for 50.6% of our 2026 forecast (vs 49.8% a year ago), a beat, but made up just 44.1% of 2026 consensus estimate, a miss, on weak revenue.
Revenue missed; cut 2026-28 revenue growth estimates to 5%/12%/12% respectively. Revenue rose 7.0% yoy/29.4% qoq to Rmb8,406m in 2Q26 and 1.75% yoy in 1H26 – this accounts for 39.8% of our Rmb37.44b estimate, vs 45.0% for 1H25. We cut 2026-28 revenue growth estimates from 15%/15%/15% to 5%/12%/12% respectively, resulting in revenue of Rmb34.19b/Rmb38.27b/Rmb42.88b, vs 1H26 revenue of Rmb14,901m. Our new 2026 revenue estimate implies 2H26 revenue of Rmb19,284m, up 8% yoy and 29% hoh.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb90.64
Rmb135.00
+48.9%
Rmb150.00
Analyst
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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