ZHONGJI INNOLIGHT(SZ:300308) Huachuang Securities·2024-10-25 13:43Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][11]. Core Views - The company reported a significant increase in revenue and net profit for the first three quarters of 2024, with revenue reaching 17.31 billion yuan, up 146.26% year-on-year, and net profit of 3.75 billion yuan, up 189.59% year-on-year [1]. - The revenue growth was impacted by chip shortages, but the company plans to increase the proportion of silicon photonics shipments to enhance supply capabilities [1]. - The gross margin remained stable at 33.64% in Q3 2024, while net profit margin was negatively affected by exchange rate fluctuations [1]. - The company expects to start shipping its 1.6T products in December, which is anticipated to positively impact revenue and profit margins due to industry demand for new products [1]. - The company is projected to benefit from the growing demand for AI computing power, leading to a steady increase in revenue and performance expectations [1]. Financial Summary - For 2024, the company is expected to generate revenues of 24.6 billion yuan, a 129.5% increase year-on-year, and a net profit of 5.315 billion yuan, reflecting a 144.5% increase [2]. - The earnings per share (EPS) is projected to be 4.74 yuan for 2024, with a price-to-earnings (P/E) ratio of 33 [2]. - The company’s total assets are expected to grow to 27.984 billion yuan by 2024, with a debt-to-equity ratio of 10.1% [5].