FiberHome(SH:600498) Changjiang Securities·2025-05-06 09:16Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The domestic computing power sector is experiencing high prosperity, leading to accelerated profit release for the company. The accumulated technology in marine communication is expected to facilitate continuous overseas expansion, improving the quality of the main business operations. The subsidiary, Changjiang Computing, is anticipated to become the most important growth driver for the company in recent years [2][11]. Summary by Sections Financial Performance - In Q1 2025, the company achieved operating revenue of 4.049 billion yuan, a year-on-year decrease of 19.97%. However, the net profit attributable to shareholders of the parent company was 55 million yuan, reflecting a year-on-year increase of 33.08% [6]. Market and Technology Developments - The company has made significant breakthroughs in market expansion and technology research, enhancing its overall strength. In the domestic operator market, it has won multiple procurement projects for optical networks, and in the international market, it has made inroads with large multinational operators in regions such as Latin America and Europe. The company has also developed next-generation optical access platforms and continues to innovate in key core technologies [11]. Strategic Outlook - The company has a forward-looking technology layout and a clear strategic plan, which lays a solid foundation for seizing industry recovery opportunities. As a key player in the optical communication field, it has incubated five national-level specialized "little giant" subsidiaries. The company is also the only high-tech enterprise globally that integrates core technologies across various domains in marine communication [11]. Profit Forecast and Investment Suggestion - The company is expected to see significant profit growth, with net profits projected at 1.03 billion yuan, 1.34 billion yuan, and 1.62 billion yuan for 2025, 2026, and 2027, respectively, representing year-on-year growth rates of 47%, 30%, and 21%. The corresponding price-to-earnings ratios are 24x, 19x, and 16x, respectively. The report emphasizes strong recommendations for investment, maintaining the "Buy" rating [11].