ZHONGJI INNOLIGHT(SZ:300308) CHINA DRAGON SECURITIES·2024-10-28 09:41Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The demand for high-speed optical modules is strong, leading to continuous growth in the company's performance. In the first three quarters of 2024, the company achieved operating revenue of 17.313 billion yuan, a year-on-year increase of 146.26%, and a net profit attributable to shareholders of 3.753 billion yuan, a year-on-year increase of 189.59% [1] - The company's high-end optical module business accounts for over 90% of its main operations, with significant overseas sales. To meet the growing demand from domestic and international customers and ensure supply chain stability, the company has established R&D centers, production bases, and sales offices in multiple locations, including China, North America, and Southeast Asia [1] - The growth in demand for 800G and 1.6T products is expected to drive the company's performance further. According to Light Counting, the 400G+ market is projected to expand at a compound annual growth rate of over 28% by 2029, with the market potentially reaching 12.5 billion USD in the coming years [1] Financial Summary - For the first three quarters of 2024, the company reported operating revenue of 17.313 billion yuan, a year-on-year increase of 146.26%, and a net profit of 3.753 billion yuan, a year-on-year increase of 189.59% [1] - The company is projected to achieve operating revenues of 25.502 billion yuan, 36.374 billion yuan, and 45.865 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 4.989 billion yuan, 7.982 billion yuan, and 10.507 billion yuan [2][4] - The company's earnings per share (EPS) for 2024 is estimated at 4.45 yuan, with a price-to-earnings (P/E) ratio of 35.1 [2][3]