NARI Technology stock: Revenue rises as profit pressure builds

NARI Technology reported strong top-line growth through the first nine months of 2026, while rising credit-impairment losses and foreign-exchange costs limited the improvement in earnings. A Guangfa Securities analysis published on November 2 said the company released its third-quarter report for 2026.

Revenue expands, earnings slow

For the first three quarters, operating revenue reached RMB 43.88 billion, an increase of 13.75% from a year earlier. Net profit attributable to shareholders rose 1.16% to RMB 4.91 billion, while profit after non-recurring items increased 1.43% to RMB 4.71 billion.

Third-quarter revenue rose 12.41% year over year to RMB 16.11 billion but declined 11.48% from the preceding quarter. Net profit attributable to shareholders fell 3.37% year over year to RMB 1.84 billion, and adjusted profit declined 2.98% to RMB 1.78 billion.

Credit costs pressure outlook

Credit-impairment losses reached RMB 442 million in the first nine months, up RMB 211 million year over year. Guangfa Securities linked the increase to faster growth in off-platform and overseas revenue and the resulting provisions for receivables. Financial expenses reached RMB 152 million, while lower other income also reflected the timing of software tax rebates.

The brokerage lowered its forecasts for attributable profit in 2026, 2027 and 2028 to RMB 8.742 billion, RMB 9.612 billion and RMB 10.605 billion, respectively. It retained a fair-value estimate of RMB 26.40 per share and said State Grid investment and the pipeline of ultra-high-voltage projects could support performance in the fourth quarter.

Power-grid technology remains core

NARI Technology develops solutions for smart grid control, power generation, transmission, substations, distribution, electricity consumption, information communications, industrial control and related infrastructure. The company is based in Nanjing, China, and its business also covers energy, rail transit, municipal environmental services and water resources.

The company is positioned as a domestic specialist in secondary power-grid equipment and ultra-high-voltage direct-current converter valves. Its expansion into intelligent computing scheduling and liquid-cooling solutions for data centers adds exposure to the growing link between electricity infrastructure and computing demand.

China's equity market provides the broader backdrop for the company through the Shanghai Composite.

More news and analyses on NARI Technology stock.