EOPTOLINK(SZ:300502) KAIYUAN SECURITIES·2024-07-09 07:30Investment Rating - The report gives a "Buy" rating for the company [2]. Core Views - The company is a leading global provider of optical modules, focusing on the research, production, and sales of high-performance optical modules and devices, with over 3,000 products serving more than 300 customers across 60 countries [5][12]. - The rapid development of AI is driving demand for high-speed optical modules, particularly 800G and 1.6T products, which are expected to significantly boost the company's growth prospects [6][20]. - The company has achieved substantial revenue growth, with projected net profits increasing from 1.54 billion yuan in 2024 to 3.29 billion yuan in 2026, indicating a strong growth trajectory [5][7]. Summary by Sections 1. Company Overview - The company has been deeply involved in the optical module industry for over a decade, focusing on high-performance optical modules and devices applicable in data centers, telecommunications, and other ICT sectors [12][14]. - It has a stable shareholding structure, with key management possessing extensive experience in optical communications [16][17]. 2. Market Dynamics - The rapid growth of AI is expected to drive the demand for high-speed optical modules, with the company positioned to benefit from this trend [6][20]. - The optical module market is projected to grow significantly, with revenues expected to reach 22.3 billion USD by 2028, reflecting a compound annual growth rate of approximately 12% [55]. 3. Financial Performance - The company reported a revenue increase from 1.998 billion yuan in 2020 to 3.098 billion yuan in 2023, with a compound annual growth rate of 15.74% [20]. - In Q1 2024, the company achieved a revenue of 1.113 billion yuan, a year-on-year increase of 85.41%, and a net profit of 325 million yuan, up 200.96% year-on-year [20][22]. 4. Product Development - The company has successfully delivered 800G optical modules and is actively developing 1.6T products, enhancing its product matrix across various fields [6][12]. - The company emphasizes R&D, with R&D expenses increasing from 85 million yuan in 2020 to 134 million yuan in 2023, indicating a commitment to innovation [28]. 5. Competitive Position - The company has established strong relationships with major global internet and telecommunications firms, with overseas revenue increasing from 43.59% in 2019 to 83.75% in 2023 [22][24]. - The domestic optical module manufacturers are gaining a larger share of the global market, with the company's position strengthening as it expands its international footprint [56].