Amlogic Shanghai Shares Jump on Strong H1 Profit Forecast

Shares of Amlogic (Shanghai) Co., Ltd. (688099) surged 7.8% to CNY 99.19 in Wednesday trading after the company released a strong preliminary profit forecast for the first half of 2026. The advance came in defiance of a broader market downturn, with the Shanghai Composite Index declining during the session.

Strong H1 Profit Guidance

In a voluntary disclosure, Amlogic announced it expects significant year-over-year earnings growth for the first six months of the year. The company projected its net profit attributable to shareholders would be approximately RMB 608 million, an increase of roughly 22.4%.

Core net profit, which excludes non-recurring items, is forecast to reach approximately RMB 560 million, representing a 22.5% increase from the same period last year. The positive guidance provided a fundamental catalyst that attracted strong investor interest.

Dual Growth Drivers

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According to the company's announcement, the robust performance is being driven by two key areas. Amlogic cited continued market share gains for its established television system-on-chip (SoC) products, both in domestic and international markets.

Furthermore, the chipmaker highlighted growing traction in its newer product lines, which investors view as high-growth segments. These include:

• AI-oriented audio and video terminal chips
• Wi-Fi and Bluetooth connectivity chips
• Automotive electronics

This dual-engine strategy, combining a cash-generating core business with expansion into new technologies, underpins the positive investor sentiment. The strong earnings preview served as confirmation of the company's growth narrative.