Boshi Automation (002698) faced a challenging start to 2026, with Q1 revenue and net profit falling to 576 million RMB (-17.70%) and 78.41 million RMB (-47.75%) respectively. The decline is tied to the cyclical nature of large-scale equipment delivery and revenue accounting. However, the standout metric was the operating cash flow, which flipped to a positive 3.64 million RMB, marking a massive 109% year-on-year jump and reflecting much stronger payment collections.
Despite the earnings hit, Boshi is doubling down on innovation. Stable R&D spending continues to fuel its smart equipment roadmap, ensuring the company's long-term moat remains intact. Management views the Q1 dip as a temporary hurdle, expecting a sharp recovery in the coming nine months as project milestones are met and equipment acceptance accelerates across its major contracts.
The firm is maintaining a "steady growth" outlook for the full year. With its financial structure improving and the backlog of orders moving toward final delivery, Boshi aims to offset the early-year lag through aggressive project execution in the peak seasons ahead.
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