Huayou Cobalt (603799.SH) released its Q1 2026 report on April 16, 2026. Below is a summary of the financial results for the quarter:
Q1 2026 Financial Highlights
(Currency: RMB)
| Item | Amount | YoY Change (%) |
| Revenue | 25.804 billion | +44.62% |
| Net Profit Attributable to Shareholders | 2.497 billion | +99.45% |
| Net Profit (Excl. Non-Recurring Items) | 2.070 billion | +68.76% |
| Basic Earnings Per Share (EPS) | 1.33 | +79.73% |
Key Drivers and Analysis
- Revenue Growth: The significant increase in revenue was primarily driven by higher sales volumes and the recovery in market prices for metals such as nickel, cobalt, and lithium.
- Profitability Enhancement: Net profit attributable to shareholders nearly doubled, driven by the rebound in metal prices and the continued realization of synergies from the company’s vertically integrated industrial chain.
- Asset Position: As of March 31, 2026, total assets stood at 174.669 billion RMB, an increase of 9.55% from the end of 2025. Net assets attributable to shareholders were 50.510 billion RMB, up 4.58% from the end of 2025.
- Cash Flow: Net cash flow from operating activities was 1.175 billion RMB, an increase of 15.50% year-over-year.
References
- Zhejiang Huayou Cobalt Co., Ltd. Q1 2026 Report (PDF)
- Huayou Cobalt Investor Relations
- Mysteel – Huayou Cobalt Q1 Financial Analysis
Based on the latest market information and announcements for Huayou Cobalt (603799.SH) as of June 2026, here is the summary regarding operational changes, outlook, and earnings forecasts:
Key Recent Developments (Q2 2026)
- M&A and Resource Positioning: The company, through its wholly-owned subsidiary Huayou Hong Kong, has deepened its participation in the Ghana lithium project by assuming contractual rights and obligations (including a 22.5% equity interest from its Singaporean subsidiary), thereby strengthening upstream raw material stability.
- Capital Operations and Equity Incentives: In June 2026, the company announced the repurchase and cancellation of restricted stocks and continued financing through technology innovation bonds. As of the end of June 2026, the pledge ratio of major shareholders’ equity stands at approximately 9.39%.
- Dividend Distribution: The profit distribution plan for the 2025 fiscal year has been completed, with a dividend of 5.00 RMB (tax included) per 10 shares.
Outlook for Next Quarter (Q3 2026)
- Financial Reporting: The company is scheduled to disclose its 2026 semi-annual report on August 19, 2026.
- Operational Focus: The market generally expects the company to maintain its competitive advantage through “industrial vertical integration.” As metal prices for nickel, cobalt, and lithium showed a recovery trend in Q1, profitability momentum in the high-precision battery materials supply chain is expected to continue if commodity prices remain stable.
- Risk Monitoring: Investors should remain attentive to the volatility risks of commodity prices, as well as the progress of upstream overseas projects and geopolitical factors.
EPS Forecast for the Coming Year
Based on data aggregated from 16 brokerage firms and research institutions as of June 22, 2026, the performance expectations for Huayou Cobalt for the full year 2026 are as follows:
- 2026 EPS Forecast (Mean): Approximately 4.89 RMB.
- Growth Potential: Market forecasts suggest that 2026 net profit is expected to reach approximately 9.274 billion RMB, representing a year-on-year growth of about 51.77%.
- Market Rating: Analysts currently maintain a consensus “Buy” recommendation, with a broad range of target prices, resulting in an average 12-month target price of approximately 76.44 RMB.
Note: The information above is based on publicly available market data. Financial forecasts are subject to uncertainty, and EPS estimates are dynamic and subject to adjustment based on subsequent quarterly earnings reports and fluctuations in metal prices.
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