Original source：风口研报First published on Unhidea：Original source date：
Key takeaway
The two companies followed different growth paths: WLG benefited from demand for AI power-supply PCBs, price pass-through and capacity expansion, while Jiangsu Financial Leasing's profit growth was driven by asset growth and easing impairment pressure.
Why did WLG's third-quarter profit jump?
The company reported third-quarter revenue of 877 million yuan, up 115.24% year on year and 59.16% quarter on quarter. Net profit attributable to shareholders was 138 million yuan, up 461.86% year on year and 268.51% quarter on quarter. AI server power-supply products accounted for approximately 63% of revenue from principal operations in the first three quarters.
Since the second quarter, rising prices for copper-clad laminates and other raw materials have at times squeezed PCB makers' profits. WLG negotiated cost sharing with customers, and price increases to customers were gradually implemented. Its third-quarter gross and net margins rose by 8.82 and 8.95 percentage points quarter on quarter, respectively.
What can new capacity and DC-DC products deliver?
New production lines in the second phase of the Jiangxi factory and the first phase in Thailand have entered operation and are ramping up during the year. Ground was broken on the second phase in Thailand in September 2026, and it is expected to enter operation in the fourth quarter of 2027. Together with the third phase in Jiangxi, its planned capacity equals existing capacity and can serve AI server power-supply demand once fully ramped up.
DC-DC power-supply PCBs have higher average selling prices and gross margins than AC-DC products. The company has qualified to supply high-end DC-DC products to a key major customer and made small-batch deliveries, while pursuing certification with multiple customers. China Post Securities believes that the profit structure could improve as the product's share of revenue rises.
China Post Securities forecasts net profit attributable to shareholders of 390 million yuan, 1 billion yuan and 1.48 billion yuan, respectively, for 2026–2028, corresponding to price-to-earnings ratios of approximately 28, 11 and 7 times.
How does Jiangsu Financial Leasing maintain profit growth while expanding assets?
The company reported revenue of 5.342 billion yuan in the first three quarters, up 15.18% year on year, and net profit attributable to shareholders of 2.696 billion yuan, up 10.22% year on year. Total assets at the end of September were 193.971 billion yuan, up 20.56% from the end of the previous year.
Industrial Securities believes the company has maintained a stable net interest spread through differentiation on the asset side and lower funding costs on the liability side. Its “vendor leasing plus regional direct sales” model also helps it acquire customers on an ongoing basis and maintain asset quality.
Third-quarter net profit attributable to shareholders rose 11.2% quarter on quarter, faster than the 6.5% rise in revenue. Credit impairment losses for the quarter were approximately 290 million yuan, below the 500 million yuan in the first quarter and approximately 330 million yuan in the second quarter. Easing impairment pressure drove profit growth.
What is the outlook for asset quality and future profit?
At the end of September 2026, the non-performing finance lease asset ratio was 0.88%, unchanged from the end of the previous year. The provision coverage ratio was 405.24%, below 421.22% at the end of the previous year, but still at a relatively high level.
Industrial Securities forecasts Jiangsu Financial Leasing's net profit attributable to shareholders at 3.573 billion yuan, 3.89 billion yuan and 4.177 billion yuan, respectively, for 2026–2028, representing year-on-year growth of 10.3%, 8.9% and 7.4%.
