ZHONGJI INNOLIGHT(SZ:300308) Guoyuan Securities·2024-09-01 04:09Investment Rating - The investment rating for the company is "Buy" and is maintained [2][20]. Core Views - The company has shown significant growth in revenue and net profit, with H1 2024 revenue reaching 10.799 billion yuan, a year-on-year increase of 169.70%, and net profit of 2.358 billion yuan, up 284.26% [2][19]. - The growth is attributed to optimized product structure and continuous cost reduction, leading to enhanced profitability [2][19]. - The company is benefiting from the increasing demand for high-speed products such as 400G and 800G, with a strong focus on silicon photonics and the upcoming 1.6T product [2][19][20]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 10.799 billion yuan, a 169.70% increase year-on-year, and a net profit of 2.358 billion yuan, reflecting a 284.26% growth [2][19]. - Q2 2024 results showed revenue of 5.956 billion yuan, up 174.88% year-on-year, and a net profit of 1.349 billion yuan, a 270.82% increase [2][19]. Profitability - The gross margin for H1 2024 was 33.13%, an increase of 2.74 percentage points year-on-year, with Q2 2024 gross margin reaching 33.44% [2][19]. - Cost control measures have led to a reduction in expense ratios across sales, management, R&D, and financial expenses, with total expense ratio decreasing by 4.49 percentage points year-on-year [2][19]. Production Capacity and Product Development - The company has rapidly expanded its production capacity to 9 million units, a year-on-year increase of 81.09%, with total production reaching 6.54 million units, up 102.48% [2][19]. - The subsidiary focused on silicon photonics, Suzhou Paixi, reported revenue of 0.142 billion yuan, a staggering 2103.81% increase, and has entered the mass production phase for some silicon photonic chips [2][19]. - The 1.6T product is currently being tested by major clients and is expected to enter mass production by the end of the year [2][19]. Future Outlook - The company is projected to benefit from the ongoing demand for computing hardware, with expected revenues of 24.641 billion yuan, 36.916 billion yuan, and 46.212 billion yuan for 2024, 2025, and 2026 respectively [20]. - Corresponding net profits are forecasted to be 5.087 billion yuan, 7.677 billion yuan, and 9.679 billion yuan for the same years [20].