Zhi Tong Cai Jing·2025-10-15 13:41Core Viewpoint - Goldman Sachs has initiated a discussion on optical modules, focusing on two Chinese companies, Zhongji Xuchuang and Tianfu Communication, both receiving a buy rating and target price increases [1][2]. Group 1: Market Context - The stock prices of optical module companies have significantly increased this year, leading to profit-taking pressures [2]. - Investors are looking for more guidance on the demand and growth prospects for 800G/1.6T optical modules in 2027, especially in light of AI-driven industry growth [2][3]. Group 2: Company Analysis - Zhongji Xuchuang is the largest optical module supplier in China's data communication market, while Tianfu Communication is a key player with a focus on niche segments [3][4]. - Zhongji Xuchuang's strengths lie in its technology and partnerships, particularly in the 800G/1.6T optical module space, benefiting from AI data center expansion [3][4]. - Tianfu Communication excels in product offerings and cost management, leading in 800G module shipments and maintaining higher-than-average gross margins [4]. Group 3: Growth Catalysts - Zhongji Xuchuang's growth is driven by the penetration of high-end products like the 1.6T optical module in AI networks [4]. - Tianfu Communication's growth relies on the increasing demand for 800G modules and the potential application of optical modules in horizontal expansion networks by 2027 [4]. Group 4: Earnings Forecast Adjustments - Zhongji Xuchuang's revenue forecasts for 2025-2027 have been raised by up to 14%, with net profit estimates adjusted by 3%-14% [5]. - The target price for Zhongji Xuchuang has been increased from 442 yuan to 470 yuan, based on a projected P/E ratio of 30 times for 2026 [5]. - Tianfu Communication's revenue forecasts for 2025-2027 have been raised by 7%-17%, with net profit estimates adjusted by 7%-16% [6][7]. - The target price for Tianfu Communication has been increased from 398 yuan to 450 yuan, based on a projected P/E ratio of 27 times for 2026 [7].