EpiWorld Shares Rise on 193.5% Profit Surge and Impending Stock Connect Inclusion

Shares of EpiWorld International (02726.HK) climbed nearly 5% in Hong Kong trading after the company released impressive mid-year financial results, fueled by surging demand from the artificial intelligence data center (AIDC) market. The stock rose as much as 4.71% to HK$111, with a transaction volume of HK$12.57 million, according to market data.

Earnings Propelled by AI Boom

In its interim results for 2026, EpiWorld reported significant growth that outperformed a struggling silicon carbide (SiC) industry, where many competitors remain unprofitable. The company, a leading global producer of SiC epitaxial wafers, benefited from its key clients' involvement in the Nvidia supply chain, capitalizing on the rapid expansion of AIDC infrastructure.

Key financial highlights from the report include:

• Revenue: RMB 578 million (+92% year-over-year)
• Gross Profit: RMB 161 million (+193.5% year-over-year)
• Adjusted Net Profit: RMB 139 million (+43.4% year-over-year)

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Stock Connect Inclusion Fuels Optimism

The stock's advance was also supported by news of its upcoming inclusion in the Hang Seng Composite Index. According to an announcement from the Hang Seng Index Company on August 21, the change will take effect on September 7, making EpiWorld eligible for the Southbound Stock Connect program.

This eligibility will allow mainland Chinese investors to trade the company's shares directly. Analysts cited by Zhitong Finance APP suggest that EpiWorld's unique position as a global leader in SiC epitaxy, with high-volume 8-inch wafer production and the world's first 12-inch offerings, makes it a highly attractive asset for mainland capital. The inclusion is expected to drive new investment and potentially lead to a higher valuation premium for the stock.