Abstract

SERES will report its second-quarter 2026 results on August 20, 2026 post-Market; our preview summarizes consensus revenue and margin expectations, near-term segment dynamics, and how institutional views are coalescing ahead of the print.

Market Forecast

Based on the company’s prior report and the latest forecast, revenue for the current quarter is estimated at 33.31 billion RMB, implying 14.86% year-over-year growth, with an estimated EPS of 2.26; forecast EBIT is -1.42 billion RMB, suggesting ongoing pressure on operating profitability. The market expects margin stabilization, with the focus on whether gross profit margin can hold near the mid-20% range and whether net profit can remain positive alongside a higher adjusted EPS year over year. Automobile operations remain the core revenue engine, with expectations centered on volume momentum and product-mix support. The most promising segment is anticipated within higher-margin configurations and new model cycles under the Automobile Industry umbrella, where unit growth is expected to outpace the broader portfolio and support revenue expansion.

Last Quarter Review

In the previous quarter, SERES reported revenue of 25.75 billion RMB, a gross profit margin of 26.24%, net profit attributable to the parent company of 0.75 billion RMB, a net profit margin of 2.93%, and adjusted EPS of 0.43, with revenue growing 34.46% year over year and adjusted EPS declining 14% year over year. A key highlight was sustained margin resilience despite a competitive pricing environment, reflected in a quarter-on-quarter net profit improvement of 17.07%. The main business of Automobile Industry contributed 25.75 billion RMB in revenue, underscoring the company’s reliance on core automotive operations to drive topline growth.

Current Quarter Outlook (with major analytical insights)

Automobile Industry: revenue scale and margin trajectory

The current quarter’s revenue forecast of 33.31 billion RMB suggests continued demand recovery and improved fulfillment, helped by model rollout cadence and sales channel reach. Margin trajectory will hinge on discount discipline and component cost normalization; the last quarter’s 26.24% gross margin provides a high base, and any product mix upgrade could cushion pricing pressures. Operating income remains the swing factor given the estimated negative EBIT, implying heavier operating expenses tied to R&D and sales promotion; tight cost control and manufacturing efficiency will be essential to bridge toward a positive operating margin over the next few quarters.

High-potential configurations and new model cycle: volume mix and ASP support

Within the Automobile Industry revenue base, higher-trim configurations and newer models are expected to carry a higher average selling price and better contribution margin. This mix shift can drive both revenue and gross profit even amid uneven market demand. Execution risks include launch timing and supply elasticity; however, if uptake of the new trims continues, it could moderate the drag from broader discounting and support sequential improvement in unit economics.

Key stock-price drivers this quarter: delivery momentum, pricing discipline, and opex intensity

Investors will focus on deliveries versus internal targets, as top-line delivery momentum is crucial to achieving the 14.86% year-on-year revenue growth forecast. Pricing discipline relative to peers will shape margin expectations; even small deviations from the mid-20% gross margin run rate could have outsized effects on sentiment given the forecast negative EBIT. Opex intensity related to marketing, channel investments, and R&D will determine the translation of gross profit into bottom-line performance; controlling these costs without compromising growth initiatives will be central to sustaining the expected EPS improvement.

Analyst Opinions

Institutional commentary over the recent period skews cautiously positive, with more bullish than bearish takes focusing on revenue growth visibility and improving EPS trajectories despite near-term EBIT pressure. Analysts highlight that sustained volume growth and a favorable product mix could underpin revenue above 33.00 billion RMB and support a year-over-year EPS increase, even if operating margins remain constrained by investment spending. The prevailing view emphasizes monitoring delivery cadence and promotional intensity; if both track within plan, the setup favors stabilization of gross margins and a constructive read-through for the second half.