TECH

Apple Supplier Dongshan Precision Rallies on AI-Driven Demand

Published: Apr. 22, 2026 11:04 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Dongshan Precision’s surge reflects broader optimism across the electronics and optical-communications sectors

Shares of Apple Inc. supplier Suzhou Dongshan Precision Manufacturing Co. Ltd. surged to the 10% daily limit Wednesday, fueled by explosive growth in its artificial-intelligence optical-module business and a strong first-quarter earnings outlook.

The Shenzhen-listed company’s stock closed at 186.3 yuan ($27.3), bringing its gains since the start of 2026 to more than 113% and lifting its market capitalization to 340 billion yuan.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to Save an extra $50. Introductory offer for new readers. Subscribe now.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Suzhou Dongshan Precision stock surged 10% to 186.3 yuan, up 113% YTD 2026, market cap 340B yuan; Q1 profit forecast 1-1.15B yuan (+119-152% YoY).
Acquired Source Photonics Sept 2025 for 5.9B yuan; 2025 net profit 1.4B yuan (+28% YoY) on 40.1B revenue, optical modules at 36.7% gross margin.
Driven by AI optical-module demand; peers Zhongji Innolight +2.5%, Everbright hit limit; R&D up 13% to 1.4B yuan.

AI generated, for reference only

Who’s Who

Apple Inc.: Dongshan Precision, a core supplier to Apple Inc., expects its flexible printed circuit business to benefit from Apple's anticipated mass production of foldable smartphones in 2026.

Suzhou Dongshan Precision Manufacturing Co. Ltd.: Suzhou Dongshan Precision Manufacturing Co. Ltd.'s shares surged 10% to 186.3 yuan ($27.3), with 2026 YTD gains >113%, market cap 340B yuan. Q1 profit forecast: 1-1.15B yuan (+119-152% YoY), driven by AI optical modules from subsidiary Source Photonics (acquired Sept 2025 for 5.9B yuan). 2025 revenue: 40.1B yuan, profit 1.4B yuan. Apple supplier for foldables.

Zhongji Innolight Co. Ltd.: Zhongji Innolight Co. Ltd. rose 2.5% to close at 886.6 yuan after hitting a record intraday high of 893.2 yuan, amid sector optimism for AI-driven optical communications.

Suzhou Everbright Photonics Co. Ltd.: Suzhou Everbright Photonics Co. Ltd. hit its daily limit on the same day as Dongshan Precision's 10% surge, reflecting market enthusiasm for AI-driven optical-communications amid soaring demand for computing power.

Source Photonics: Source Photonics, acquired by Dongshan Precision in September 2025 for 5.9 billion yuan, is a key subsidiary fueling AI optical-module growth. It secures major clients and is among few firms capable of in-house optical-chip R&D and mass production. In 2025, it generated 1.4B yuan revenue at 36.7% gross margin.

Soochow Securities Co. Ltd.: Soochow Securities Co. Ltd. maintained a "buy" rating on Suzhou Dongshan Precision Manufacturing Co. Ltd.'s stock, citing its shift from traditional electronics to AI infrastructure supplier. It highlighted synergies with subsidiary Source Photonics, creating a dual-engine growth model for earnings momentum. (48 words)

AI generated, for reference only