ZHONGJI INNOLIGHT(SZ:300308) 3 6 Ke·2025-08-29 03:05Core Viewpoint - The recent surge in A-share technology stocks, particularly in the optical communication sector, is driven by advancements in AI, cloud computing, and the widespread deployment of 5G networks [1][2]. Industry Overview - The global optical communication industry is rapidly developing, with key products including optical chips, optical modules, and optical network terminals forming a tightly integrated value chain [2]. - The optical module market is projected to grow from RMB 77.5 billion in 2020 to RMB 126.7 billion by 2024, with a compound annual growth rate (CAGR) of 13.1% [12]. - By 2029, the global optical module market is expected to reach RMB 295.4 billion, with China's market size projected to be RMB 32.9 billion in 2024, accounting for 26% of the global market [12]. Company Overview - Nazhen Technology, a key player in the optical communication sector, is preparing for an IPO in Hong Kong, with Citigroup and CITIC Securities as joint sponsors [2][3]. - The company specializes in providing critical optical communication products for AI computing networks and is one of the few globally with capabilities in both optical module and optical chip R&D and mass production [2]. Financial Performance - Nazhen Technology's revenue is primarily derived from optical modules, which accounted for over 64% of total revenue during the reporting period, with a growing trend [3][4]. - The company's revenue for 2022, 2023, 2024, and the first half of 2025 was approximately RMB 5.04 billion, RMB 4.24 billion, RMB 5.09 billion, and RMB 4.22 billion, respectively [9]. - Net profit has fluctuated significantly, with 2023 and 2024 showing declines due to market price drops and reduced sales volumes in telecom optical modules [9][10]. Competitive Landscape - Nazhen Technology faces intense competition from companies like Zhongji Xuchuang, Xinyi Technology, and Coherent, which have stronger financial and technological resources [16]. - The company ranks fifth globally in the optical module market with a 2.9% market share and third in China with a 7.2% market share [16]. Supply Chain and Client Base - The company sources optical chips and components from third-party suppliers, with the top five suppliers accounting for a significant portion of total procurement [8]. - Major clients include cloud service providers and telecom equipment suppliers, with over 65% of revenue coming from sales in China [8]. Research and Development - Nazhen Technology has invested significantly in R&D, with expenses representing 10.9%, 13.1%, 12.3%, and 8.1% of total revenue during the reporting period [12]. - The company aims to enhance its product line and expand production capacity through the funds raised from the IPO [19].