EOPTOLINK(SZ:300502) CMS·2025-04-24 08:33Investment Rating - The report maintains a rating of "Add" for the company [5] Core Views - The company achieved significant revenue growth in 2024, with total revenue of 8.647 billion yuan, representing a year-over-year increase of 179.15%, and a net profit of 2.838 billion yuan, up 312.26% year-over-year [1][2] - In Q1 2025, the company continued its growth trajectory, reporting revenue of 4.052 billion yuan, a year-over-year increase of 264.13%, and a net profit of 1.573 billion yuan, up 384.54% year-over-year [1][2] - The demand for high-speed optical modules is driving the company's growth, particularly in the 800G product segment, which is expected to become a significant part of sales in 2025 [2][3] Summary by Sections Financial Performance - In 2024, the company reported a gross margin of 44.72%, which improved to 48.66% in Q1 2025, driven by an increase in high-speed product sales and operational efficiency [3] - The operating cash flow for 2024 was 641 million yuan, a decrease of 48.56% year-over-year, while Q1 2025 saw an increase to 199 million yuan, up 20.45% year-over-year [3] Market Expansion - The company is expanding its domestic and international markets, with a focus on the 800G product line, which has seen increasing shipments [2] - The company has established strong partnerships with domestic internet firms and is managing its supply chain effectively to meet market demands [2] Research and Development - In 2024, the company invested 403 million yuan in R&D, a year-over-year increase of 201.38%, focusing on new products and technologies in the optical module sector [4] Financial Projections - The company is projected to achieve net profits of 6.038 billion yuan, 7.256 billion yuan, and 8.312 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 10.7, 8.9, and 7.8 [9][10]