MEIG (03268) saw its shares climb more than 5% in early trading, last up 5.27% to HK$20.18, with turnover reaching HK$8.39 million.

The surge follows the company's release of its interim results for fiscal year 2026, which showed revenue of approximately RMB 2.025 billion, a year-on-year increase of 7.32%. Net profit attributable to shareholders rose 25.85% to around RMB 106 million, with basic earnings per share of RMB 0.38.

From a regional perspective, the first half of 2026 saw overseas revenue surge 87.30% year-on-year to RMB 997 million, driven by strong demand for smart modules, edge computing products, and 5G wireless broadband devices, alongside increased shipments to major overseas clients. This lifted the overseas revenue share to 49.26%, up from 28.22% in the same period last year—marking the first time in the company's history that overseas revenue has approached the 50% threshold.

During the reporting period, the company systematically passed on price increases to downstream customers across various industries, leveraged its inventory advantages in storage chips to mitigate supply chain cost fluctuations, and intensified efforts to build its AI engine platform and toolchain capabilities. By empowering customer products with AI-driven smart applications across industries, the company aims to create incremental value and steadily support the recovery and improvement of client-side gross margins.

The company's gross margin for its core business reached 17.45% in the reporting period, up 3.99 percentage points year-on-year. Notably, the gross margin improved sequentially, rising from 16.05% in the first quarter of 2026 to 18.63% in the second quarter.