ZHONGJI INNOLIGHT(SZ:300308) Shanxi Securities·2025-05-22 09:48Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [1]. Core Views - The company's revenue for 2024 reached 23.86 billion yuan, a year-on-year increase of 122.6%, with a net profit of 5.17 billion yuan, up 137.9% [1]. - In Q1 2025, the company reported revenue of 6.67 billion yuan, reflecting a quarter-on-quarter increase of 37.8% and a year-on-year increase of 1.9% [1]. - The company is expected to benefit from sustained global AI infrastructure investments and increasing bandwidth demands for AI chips, projecting net profits of 8.35 billion yuan, 10.72 billion yuan, and 13.31 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 61.5%, 28.4%, and 24.1% [9]. Summary by Sections Financial Performance - The company achieved a gross margin of 33.8% and a net margin of 22.5% in 2024, both showing improvement due to the increased shipment of high-end products [1]. - In Q1 2025, the net profit margin improved by 2 percentage points due to a higher proportion of high-end products and cost reductions [1][3]. Market Position and Demand - The company is positioned to meet the growing demand for optical modules, with a projected production capacity of 20.88 million units in 2024, a year-on-year increase of 113.7% [3]. - The company is expected to be a leading supplier in the global silicon photonics module market by 2025, surpassing Intel [4]. Investment and Growth Outlook - The report highlights a significant increase in capital expenditures (CAPEX) from major clients like Microsoft, META, Google, and Amazon, which is expected to rise by 37% to 30.55 billion USD in 2025 [3]. - The domestic market is also showing explosive growth potential, with a projected market size of 6.5 billion USD by 2029, driven by AI server and network equipment demands [8]. Valuation Metrics - The company's dynamic price-to-earnings (P/E) ratio is currently in a low range, suggesting potential for price appreciation [9]. - The projected earnings per share (EPS) for 2025 is 7.55 yuan, with a P/E ratio of 12.5 [11].