Highlights

• Crystal’s 1H26 net profit grew 10.6% yoy to US$109m, representing 43% of
  our full-year estimate, driven by solid order growth from key customers,
  ongoing worker efficiency improvement and operating leverage, despite
  capacity constraints and tariff-related pricing adjustments.
   
• Management is positive on 2H26 outlook and targets double-digit/high singledigit
  yoy revenue growth in 2H26/2026 respectively, backed by solid order
  growth momentum and continued worker additions in 2H26. Gross margin is
  expected to remain stable yoy.
   

• We believe that Crystal’s long-term wallet share gains will remain intact on
  the back of its cross-category product innovation capabilities amid vendor
  consolidation. Maintain BUY and raise target price to HK$8.34 from HK$7.84
  based on 12.0x 2026F PE.
   
   

  

Analysis

• 1H26 results. Crystal International’s (Crystal) 1H26 revenue grew 5.4% yoy
  to US$1,296m, representing 45% of our full-year estimate, driven by strong
  order growth from key customers, but partially offset by capacity constraints.
  Gross margin expanded 0.1ppt yoy to 19.8%, supported by improved labour
  productivity that more than offset tariff-related pricing adjustments. Net profit
  grew 10.6% yoy to US$109m, representing 43% of our full-year estimate,
  driven by higher gross margin and continued operating leverage. Net margin
  widened 0.4ppt yoy to 8.4%.