ZHONGJI INNOLIGHT(SZ:300308) Xin Lang Cai Jing·2025-04-21 12:35Core Viewpoint - The company demonstrates strong financial performance with significant year-on-year growth in revenue and net profit, driven by increasing demand in the AI and optical module markets [1][2][3]. Financial Performance - In 2024, the company achieved revenue of 23.862 billion yuan, a year-on-year increase of 122.64%, and a net profit attributable to shareholders of 5.171 billion yuan, up 137.93% [1]. - The company reported a gross margin of 33.81% for the year, an increase of 0.82 percentage points year-on-year, and a net profit margin of 22.51%, up 1.91 percentage points [1]. - For Q1 2025, the company’s revenue was 6.674 billion yuan, a year-on-year increase of 37.82%, and a net profit of 1.583 billion yuan, up 56.83% [1]. Market Trends - The demand for AI is driving high growth in capital expenditures (Capex) in the downstream market, particularly in optical communication networks, which are essential for data center hardware [2]. - The global optical module market is expected to grow at a CAGR of 22% from 2024 to 2029, potentially exceeding 37 billion USD by 2029 [2]. Competitive Position - The company is a global leader in optical modules, with significant investments in advanced technologies such as coherent optical modules and optical-electrical co-packaging (CPO) [3]. - The company is increasing the proportion of high-end products, with a rapid rise in shipments of 800G and 400G products, and is preparing for mass production of 1.6T products [3]. - The company is expanding its overseas production capacity to mitigate geopolitical risks and enhance its ability to supply key international customers [3]. Profit Forecast and Valuation - The company is expected to achieve net profits of 8.5 billion yuan, 11.2 billion yuan, and 13.6 billion yuan for the years 2025 to 2027, with a projected PE ratio of 14X for 2025 [3].