Jonhon Optronic's Q3 profit jumped 172% on AI data centers; nine-month cash flow is negative CNY 1.1 billion
Jonhon Optronic's Q3 net profit jumped 172% on AI data-center demand for optical modules, copper cable and liquid cooling, its first growth quarter after four straight declines. The catch: nine-month operating cash flow was negative CNY 1.10 billion, down 81%.
Richard Tang · 2 min read
AVIC Jonhon Optronic+3.04% — AVIC Jonhon Optronic, up 3.04 percent today, the Chinese defense connector maker listed in Shenzhen, just posted its first quarter of real profit growth after four straight declines, and the engine is not its military base but AI data centers. Third-quarter net profit rose 172% year on year to CNY 816 million, on revenue up 47.87% to CNY 6.88 billion 12. The stock jumped 7% on the print 3.
The turnaround is stark against the recent record: full-year 2025 profit fell 36%, the first quarter of 2026 fell 38%, and the first half fell 22% 4. For the nine months, revenue was CNY 18.12 billion, up 14.42%, with attributable profit of CNY 1.94 billion, up 11.42% 14.
The gap between a weak nine-month line and an explosive third quarter is the story: the inflection landed in Q3, and per Soochow Securities' November 3 review it came from AI compute infrastructure 5. Demand for high-speed optical modules was pronounced, subsidiary Xiangtong Guangke's optical communications business doubled, and liquid-cooling orders doubled. High-speed copper cable assemblies and CPO full-optical interconnect solutions are in volume use at top-tier customers, with some orders scheduled into 2027 5.
Jonhon's net profit growth swung from -38% in Q1 to +172% in Q3
Data
| Value | |
|---|---|
| FY2025 | -36% y/y |
| Q1 2026 | -38% y/y |
| Q3 2026 | 172% y/y |
The AI buildout is a bill of materials, and Jonhon sells the interconnect
Every AI data center built needs a bill of materials, and interconnect is the part Jonhon actually makes. The company now sells power products, optical transmission components, high-speed cabling and cooling into that bill, and it bought Chengdu RF-interconnect firm Chuanmei New Technology to round out the portfolio 5. Defense is still the core, with unmanned systems, undersea, military trade and satellite-launch businesses growing 5, but the growth engine has visibly changed.
Negative CNY 1.1 billion of operating cash flow
The catch is cash. Nine-month operating cash flow was negative CNY 1.10 billion, down 81% 5, so the profit inflection is being financed by working capital: Jonhon is shipping into AI buildout faster than customers are paying. The share price reflects conviction; the cash collection question is unanswered.
Soochow keeps Buy and forecasts 2026-28 net profit of CNY 2.57 billion, 3.06 billion and 3.58 billion, roughly 28, 23 and 20 times earnings 5; the four-analyst consensus target is CNY 47.27 against a latest price of CNY 33.95 67. For investors in the interconnect-for-AI theme, a Chinese rival now has a scaling AI-connector profile alongside the Western names. The number to watch next is not profit growth. It is whether operating cash flow turns before the order book does.
Soochow sees Jonhon's profit growing about 18% a year through 2028
- Net profit forecast
- Estimate
Data
| Net profit forecast | |
|---|---|
| 2026 (estimate) | CNY 2.57B |
| 2027 (estimate) | CNY 3.06B |
| 2028 (estimate) | CNY 3.58B |
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