EOPTOLINK(SZ:300502) Shanxi Securities·2025-05-23 08:28Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% compared to the benchmark index [1]. Core Insights - The company achieved significant growth in revenue and profit in 2024, with revenue reaching 8.65 billion yuan, a year-on-year increase of 179.2%, and net profit of 2.84 billion yuan, up 312.3% [1]. - In Q1 2025, the company continued to show strong performance with revenue of 4.05 billion yuan, a quarter-on-quarter increase of 15.2%, and net profit of 1.57 billion yuan, up 32.0% [1]. - The gross margin and net margin reached new highs at 48.7% and 38.8% respectively in Q1 2025, positioning the company as a leader in the industry [1][3]. Financial Performance - The company's point-to-point optical module production capacity increased by 24.7% year-on-year to 10.6 million units in 2024, reflecting strong demand [4]. - The fixed asset value reached 2.28 billion yuan in Q1 2025, showing a year-on-year growth of 65.2% [4]. - Inventory value surged to 5.46 billion yuan in Q1 2025, a year-on-year increase of 262.8%, indicating robust delivery demand [4]. Market Dynamics - The company benefits from the increasing capital expenditure of major North American CSPs, which is expected to rise by 37% to 305.5 billion USD in 2025 [3]. - The company has successfully launched new products, including the second-generation 1.6T OFSP and OSFP-RHS optical modules, which utilize advanced 3nm DSP technology [4]. Research and Development - The company invested 400 million yuan in R&D in 2024, a year-on-year increase of 201.4%, focusing on hyperscale DCI and advanced coherent technology [7]. - The domestic market revenue reached 1.84 billion yuan in 2024, a significant year-on-year growth of 266.0%, establishing the company as a key player in the domestic AI computing market [7]. Profit Forecast and Valuation - The company is projected to achieve net profits of 5.89 billion yuan, 7.43 billion yuan, and 9.21 billion yuan for 2025, 2026, and 2027 respectively, with EPS estimates of 8.31, 10.48, and 13.00 [8]. - The current valuation is at a historical low, supporting the "Buy-A" rating [8].