HK Stock Market Move | Guangdong Dtech Technology (01377) surged over 8%. The company's high-margin AI drilling needles are seeing an increased proportion, driven by Rubin, leading to both the volume and price of drilling needles rising together, which is expected to accelerate realization.

Guangdong Dtech Technology (01377) rose over 8% before noon, and as of the time of this report, it was up 8.19%, priced at HKD 346.2, with a trading volume of HKD 22.65 million. In terms of news, Guangdong Dtech Technology previously disclosed its semi-annual report for 2026. CMSC pointed out that the company achieved a revenue of RMB 1.943 billion in H1 2026, a year-on-year increase of 114.85%; the net profit attributable to the parent company was RMB 679 million, up 325.12% year-on-year; and the net profit attributable to the parent company excluding non-recurring gains and losses was RMB 670 million, up 353.28% year-on-year. On the business side, in Q2 2026, the company's gross margin was 57.85%, an increase of 17.55 percentage points year-on-year and 4.60 percentage points quarter-on-quarter, while the net margin was 37.02%, up 18.98 percentage points year-on-year and 5.06 percentage points quarter-on-quarter, due to the sustained growth in high-value-added products such as micro-diameter drill bits, high-length-to-diameter ratio drill bits, and high-end coated drill bits. CMSC continued to state that based on the companys semi-annual report, in H1 2026, the company invested RMB 89 million in R&D, an increase of 54.6% year-on-year. It has already achieved mass production of drill bits with a length-to-diameter ratio of over 40 times and successfully broken through the design and manufacturing processes for ultra-high-length-to-diameter ratio drill bits over 60 times. Meanwhile, diamond composite coated drill bits suitable for processing M9+ ceramic mixed pressure materials have entered the small-batch application stage. The firm believes that the current situation of drill bit supply being unable to meet demand is still intensifying, with very few players participating in high-end fields. Looking ahead to Q3, the increase in both volume and price of drill bits driven by Rubin is expected to accelerate, and the company is optimistic about sustaining high growth in performance for the second half of the year.