OPTOWIDE(SH:688195) Tianfeng Securities·2025-05-13 11:07Investment Rating - The report assigns an "Accumulate" rating for the company with a target price of 52.49 CNY, based on a projected PE of 70 for 2025 [5][6]. Core Insights - The company is positioned as a leader in precision optical components, benefiting from the growth in AI computing power and emerging application fields such as biomedicine and AR [1][2]. - The company has shown steady revenue growth, with a projected total revenue of 445 million CNY in 2024, representing a year-on-year increase of 30.96%, and a net profit of 69.37 million CNY, up 66.53% year-on-year [1][29]. - The company focuses on three strategic areas: technological innovation, multi-application field expansion, and smart manufacturing [1][54]. Summary by Sections Company Overview - The company specializes in the R&D, production, and sales of various precision optical components and fiber optic devices, having established itself in the optical optoelectronics industry [1][16]. - The company has received multiple accolades, including being recognized as a national high-tech enterprise and a "little giant" enterprise in specialized and innovative sectors [16][21]. Industry Growth Drivers - The demand for optical communication equipment is driven by the commercialization of 5G and the expansion of AI applications, with the optical communication market in China expected to reach 147.3 billion CNY by 2024 [2][27]. - The biomedicine sector is experiencing continuous expansion, with a significant increase in demand for wearable physiological monitoring devices [2][27]. Technological Innovation - The company has developed six core technology platforms, enabling vertical integration and cost-effective mass production of optical components [3][54]. - The company has established partnerships with major global players in the optical module and fiber laser markets, enhancing its competitive position [4][21]. Financial Performance - The company’s revenue from precision optical components is projected to reach 355 million CNY in 2024, accounting for 79.78% of total revenue [29][30]. - The company’s net profit is expected to grow significantly, with projections of 97 million CNY in 2025 and 132 million CNY in 2026 [5][11]. Investment Recommendations - The report forecasts a strong growth trajectory for the company, with net profits expected to reach 1.69 billion CNY by 2027, corresponding to a PE ratio of 30 [5][11]. - The company is well-positioned to capitalize on the increasing demand for high-speed optical communication components driven by AI computing needs [1][2].