2 1 Shi Ji Jing Ji Bao Dao·2025-10-31 09:40Core Viewpoint - Despite significant revenue growth reported by leading optical module companies, the market has reacted negatively, indicating concerns about the sustainability of their growth and valuation [2][4]. Financial Performance - Zhongji Xuchuang reported a revenue of 25.005 billion yuan for the first three quarters, a year-on-year increase of 44.43%, with a net profit of 7.132 billion yuan, up 90.05% [5]. - Xinyi Sheng achieved a revenue of 16.505 billion yuan, a remarkable year-on-year growth of 221.70%, and a net profit of 6.327 billion yuan, up 284.37% [5]. - In Q3 alone, Zhongji Xuchuang's revenue was 10.216 billion yuan with a gross margin of 43%, while Xinyi Sheng's Q3 revenue was 6.068 billion yuan, showing a slight decline from the previous quarter [5][6]. Growth Concerns - Xinyi Sheng acknowledged a slight decrease in Q3 revenue due to changes in product shipment schedules, although it maintained a high gross margin of 47% and a net margin of 39.3% [6]. - Both companies are experiencing a transition period with increasing demand for 800G and the introduction of 1.6T products, which is expected to drive future growth [7]. Capacity Expansion - Zhongji Xuchuang's construction projects increased significantly from 52.53 million yuan at the beginning of the year to 980 million yuan, a growth of 1765.65%, indicating a focus on capacity expansion [7][8]. - Xinyi Sheng is also expanding its overseas capacity, particularly in Thailand, with a gradual release of production capacity expected [8]. Supply Chain Challenges - The supply chain, especially for optical chips, is becoming a critical constraint for the industry, with Zhongji Xuchuang noting a high level of tension in chip supply due to rapid demand growth [8]. - Both companies are managing their supply chains effectively, with Xinyi Sheng maintaining long-term relationships with suppliers [8]. Operational Pressures - Both companies are facing operational pressures due to inventory growth, with Zhongji Xuchuang's inventory rising by 52.64% to 11.216 billion yuan and Xinyi Sheng's inventory increasing by 59.79% to 6.603 billion yuan [10]. - Zhongji Xuchuang's effective tax rate increased to 15.8% due to new tax regulations affecting its overseas operations, which may impact future tax burdens [10]. Valuation Challenges - Despite strong performance, both companies face valuation pressures, with Zhongji Xuchuang's market cap at 522.9 billion yuan and a dynamic P/E ratio of 55.27, while Xinyi Sheng's market cap is 342.2 billion yuan with a P/E ratio of 40.57 [11]. - The market's reaction to their earnings reports reflects concerns over the sustainability of their growth narratives and high valuations [12].