Shijia Photons(SH:688313) Zhongyuan Securities·2024-09-11 11:49Investment Rating - The report maintains a rating of "Accumulate" for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [1][13]. Core Views - The company's revenue for the first half of 2024 reached 449 million yuan, representing a year-on-year growth of 36.07%, with a net profit attributable to shareholders of 11.96 million yuan, up 167.5% year-on-year [1]. - The growth momentum in the company's main business segments, including optical chips and devices, indoor optical cables, and cable polymer materials, is strong, driven by the dual-platform IDM model [1][2]. - The demand for optical chips and devices is expected to continue growing, particularly in the data communication market, driven by AI computing needs and the increasing demand for 400G/800G optical modules [2][3]. Summary by Sections Financial Performance - In 2024H1, the gross margin improved to 23.81%, an increase of 5.3 percentage points year-on-year, while the company’s expense ratio decreased by 4.7 percentage points [1]. - The company’s net profit for 2024 is projected to be 40 million yuan, with a significant recovery expected in subsequent years, reaching 76 million yuan in 2025 and 104 million yuan in 2026 [3][4]. Market Trends - The data communication market is anticipated to grow significantly, with a compound annual growth rate (CAGR) of over 28% for the 400G+ market expected by 2029 [2]. - The indoor optical cable market is experiencing strong demand, particularly for multi-core and large-core optical cables used in AI data centers, with global optical cable demand projected to grow at a CAGR of approximately 4% from 2023 to 2027 [2]. Product Development - The company is focusing on high-power CW DFB lasers, high-speed DFB lasers, and EML lasers for emerging fields such as optical sensing and optical computing, aiming to meet customer demand and expand its market presence [1][2]. - The company is also enhancing its R&D capabilities, with a research and development expense ratio of 12.0% in 2024H1, indicating a commitment to innovation and technology advancement [1][3].