Ge Long Hui A P P·2025-08-29 07:46Core Viewpoint - Dongwu Securities report indicates that Zhongji Xuchuang's net profit attributable to shareholders reached 4.0 billion yuan in the first half of the year, representing a year-on-year increase of 69.4% [1] - The company is expected to maintain long-term growth due to impressive profit margins and ongoing scale-up efforts [1] Financial Performance - In Q2 2025, the net profit attributable to shareholders was 2.41 billion yuan, showing a year-on-year increase of 78.8% and a quarter-on-quarter increase of 52.4% [1] - The profit margin is on an upward trend, supported by the expansion of 800G shipment scale and the ramp-up of silicon photonic modules [1] Strategic Initiatives - The company is advancing the third phase of the Tongling Xuchuang high-end optical module industrial park and other fundraising projects, which will further release the capacity for high-end products [1] - There is a strong demand backdrop, and the company is expected to gain structural advantages in material supply due to its deep layout in silicon photonic chips [1] Market Position - The company is well-positioned to continue expanding capacity and enhancing the delivery capability of high-end products while introducing more high-end product lines [1] - The outlook remains positive for profit margin improvement with the ramp-up of silicon photonic and 1.6T products [1]