Huanlian Link (01473) is pleased. It is expected that the comprehensive profit attributable to shareholders in the medium term will increase significantly by no less than HK$80 million over the same period last year

Zhitong Finance App News, Translink (01473) announced that the Group expects to obtain an unaudited comprehensive profit of not less than HK$80 million for the six months ending September 30, 2026, and an unaudited comprehensive profit attributable to the Company's owners of about HK$15.4 million during the same period in 2025.

The Group's revenue increased by more than 80% during this period, mainly driven by the Group's fulfillment and delivery of a large number of 200Gb/s indium phosphide photodiode (PD) product sales orders. Sales and revenue increased as a result, driving the Group's net profit to increase by more than 400% during the period. The Group currently delivers approximately 15 million PD products per month, and this delivery volume is expected to increase further in the second half of this fiscal year and the next.

The Group supplies a comprehensive portfolio of optoelectronic and semiconductor components, including integrated circuits, lasers, photodiodes (PDs) and related devices. These devices can realize electro-optic and photoelectric signal conversion in AI data center applications and high-speed optical 800G/ 1.6T/3.2T modules in optical interconnection. The Group's transimpedance amplifiers (TIA) are currently being certified by customers, while CW lasers are in the sample testing phase.

In particular, the Group's 200Gb/s PD product business continued to benefit from strong market demand during this period. The continued development of artificial intelligence infrastructure and the increasing demand for high-speed optical connectivity for graphics processing unit (GPU) infrastructure are mainly driving this demand. The Group believes that continued demand for its PD products, combined with existing outstanding orders, will continue to provide a solid foundation for the Group's sustainable development.

The Group's contribution to the high-power industrial laser business is increasing, which is expected to further diversify its revenue structure, increase average gross margin, and deliver strong profit performance.

The Group recently signed an exclusive supply agreement with a leading domestic and global manufacturer of printed circuit board (PCB) laser drilling equipment for high-power laser light source systems (including laser light sources, power supply, air static gas, cables and related accessories).

This equipment is used by first-line manufacturers to produce high-density high-density interconnect (HDI) printed circuit boards and ultra-HDI printed circuit boards. This high power laser light source system is mainly used for 1.6T/3.2T printed circuit board (PCB) laser drilling and laser circuit structuring.

The Group began delivering products in October 2026 and is expected to deliver no less than 500 products in the fiscal year ending March 31, 2027 (expected revenue of not less than 55 million US dollars). In addition to equipment sales, the Group has recently expanded its laser laser laboratory in Shenzhen to provide after-sales maintenance services, including laser head repair and replacement. This move will further develop the Group's revenue sources, enhance laboratory functions and capabilities, and long-term overall profitability, and cultivate long-term customer relationships.

The rapid expansion of AI data centers and high-speed artificial intelligence communication is driving major upgrades to computing and network infrastructure. As demand for bandwidth in hyperscale artificial intelligence systems increases, the industry is accelerating the transformation to 1.6T and 3.2T interconnect hardware, while adopting more powerful artificial intelligence GPUs and advanced semiconductor packaging technology. Such systems require increasingly complex, high-density PCBs and HDI boards, which have more precise circuits, more accurate drilling, stronger resistance to optical feedback, and significantly more stringent manufacturing yield requirements. As a result, demand for high-speed and high-precision laser processing (including micro-drilling, fine wire circuit structuring, and other precision processes) is expected to grow as the AI infrastructure investment cycle progresses.

In this context, the Group is in a strategic position to grasp the accelerating capital expenditure in the AI hardware supply chain. The Group's management anticipates that the industrial laser business will become a key growth driver in the near future and account for a significant profit ratio in financial statements over the next few years.