Hong Kong Market Movers | DEEP SOURCE (00990) Surges Nearly 8% as H1 Profitability Improves Significantly, Targeting Lithium Value Chain and AI Industry

Stock News
09/07

Shares of DEEP SOURCE (00990) climbed nearly 8% during Wednesday trading, with the stock last up 7.08% at HK$0.605, recording a turnover of approximately HK$16.75 million.

According to the company's recently released interim results for fiscal 2026, revenue from continuing operations reached roughly HK$14.96 billion, marking a year-on-year increase of about 49%. Gross profit stood at HK$452 million, while operating profit reached HK$395 million, reflecting growth of approximately 92% and 139% compared to the prior-year period, respectively. The gross margin improved to around 3.02%, up about 67 basis points from the same period last year.

The growth rates for both gross profit and operating profit outpaced revenue expansion, indicating a marked improvement in profitability. In the outlook section of its interim report, the company explicitly incorporated both the lithium value chain and AI infrastructure-related businesses into its future strategic direction, upgrading AI industry-related statements to part of its formal forward-looking strategy.

Management stated that the company will focus its strategic transformation on areas such as artificial intelligence infrastructure, and has already begun planning and implementing related initiatives to support future growth. The company will make appropriate announcements in accordance with relevant requirements as needed.

With its advancements in the AI sector now entering a medium-to-long-term observation window, the company's strategic shift warrants attention from market participants.

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