EOPTOLINK(300502) 国元证券·2024-10-29 06:00Investment Rating - Buy rating maintained for the company [1][4] Core Views - The company's performance shows significant year-on-year and quarter-on-quarter growth, driven by AI-related demand expansion [2][3] - AI-driven demand for computing power hardware is boosting the company's revenue and profitability, with high-speed products contributing significantly [3] - The company's cost control and high-speed product offerings have led to a gross margin increase of 14.14 pcts YoY to 42.34% in the first three quarters of 2024 [3] - OpenAI's new model, o1-preview, has further boosted market confidence in AI capabilities, accelerating the demand for high-speed, low-power, and low-cost optical modules [3] - The company has a strong product portfolio, including 400G, 800G, and 1.6T high-speed optical modules, with LPO solutions offering advantages in power consumption and cost [3] Financial Performance - In Q3 2024, the company achieved revenue of 2.403 billion yuan, up 207.12% YoY and 48.79% QoQ, with net profit of 781 million yuan, up 453.07% YoY and 44.46% QoQ [2] - For the first three quarters of 2024, the company's revenue reached 5.130 billion yuan, up 145.82% YoY, with net profit of 1.646 billion yuan, up 283.20% YoY [2] - The company's gross margin for Q3 2024 was 41.53%, up 15.37 pcts YoY, while expense ratios continued to decline [3] - Revenue and net profit are expected to grow significantly from 2024 to 2026, with revenue projected at 6.909 billion, 12.064 billion, and 16.731 billion yuan, and net profit at 2.220 billion, 3.635 billion, and 5.059 billion yuan, respectively [4] Industry Trends - The demand for high-speed optical modules is accelerating due to the increasing need for AI computing power and faster data transmission [3] - The trend towards lower power consumption and cost in optical modules is becoming more prominent as the number of interconnected GPUs in clusters grows [3] Product Portfolio - The company offers a wide range of high-speed optical modules, including 400G, 800G, and 1.6T solutions based on VCSEL/EML, silicon photonics, and thin-film lithium niobate technologies [3] - LPO (Linear Pluggable Optics) solutions are highlighted for their advantages in power consumption and cost efficiency [3]