EOPTOLINK(SZ:300502) Tianfeng Securities·2025-05-12 02:48Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6]. Core Views - The company reported a significant increase in revenue and net profit for 2024, with total revenue reaching 8.65 billion yuan (YoY +179.15%) and net profit of 2.84 billion yuan (YoY +312.26%). For Q1 2025, revenue was 4.05 billion yuan (YoY +264.13%) and net profit was 1.57 billion yuan (YoY +384.54%) [1][5]. - The company has made substantial progress in developing new products and technologies, particularly in the silicon photonics sector, which is expected to drive future growth [1][4]. - The company has successfully increased its overseas revenue to 6.81 billion yuan (YoY +162.31%) and domestic revenue to 1.84 billion yuan (YoY +265.95%) in 2024, indicating strong demand for its products [1]. Financial Performance - The company's Q1 2025 performance showed a quarter-on-quarter revenue increase to 4.05 billion yuan (QoQ +15.24%) and net profit of 1.57 billion yuan (QoQ +31.95%), with a notable improvement in net profit margin [3]. - The gross margin for 2024 improved by 13.73 percentage points, while the expense ratio increased slightly by 1.17 percentage points, indicating enhanced profitability despite rising costs [4]. - The company is expected to continue its growth trajectory, with projected net profits of 7.33 billion yuan, 11.62 billion yuan, and 14.40 billion yuan for 2025, 2026, and 2027 respectively [5][11]. Product Development and Market Position - The company has expanded its product line in the silicon photonics sector, successfully launching 400G and 800G optical modules, which are anticipated to meet increasing market demand [4]. - The establishment of a factory in Thailand is expected to enhance the company's production capabilities and supply chain stability, further supporting its growth strategy [2]. Market Outlook - The company is well-positioned to benefit from the rapid growth in the AI and cloud computing data center markets, which are expected to drive demand for its high-speed optical modules [5]. - The ongoing development of the 1.6T optical module is anticipated to contribute significantly to the company's long-term growth [5].