EOPTOLINK(SZ:300502) EBSCN·2025-05-28 03:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a projected investment return exceeding the market benchmark by more than 15% over the next 6-12 months [6]. Core Insights - The company is benefiting from a significant increase in demand for AI cluster networking, with projected revenues of CNY 8.647 billion in 2024, representing a year-on-year growth of 179.15%, and a net profit of CNY 2.838 billion, up 312.26% [1]. - The company has successfully launched industry-leading products, including the latest 800G/1.6T optical modules, and is enhancing its global presence through partnerships with major communication equipment manufacturers and internet companies [2]. - The company's profitability is improving due to refined management practices, achieving a gross margin of 44.72% in 2024 and a net margin of 32.82% [3]. Financial Projections - Revenue and net profit forecasts for the company have been significantly raised, with expected net profits of CNY 6.721 billion in 2025 and CNY 8.883 billion in 2026, reflecting growth rates of 136.84% and 32.17% respectively [4]. - The company's earnings per share (EPS) is projected to reach CNY 9.48 in 2025 and CNY 12.53 in 2026, with a price-to-earnings (P/E) ratio decreasing to 12X and 9X in the same years [5][12]. Profitability and Efficiency - The company has achieved a gross margin of 44.72% in 2024 and 48.66% in Q1 2025, indicating a continuous improvement in operational efficiency [3]. - The return on equity (ROE) is projected to be 45.63% in 2025, reflecting strong profitability and effective capital management [12]. Market Position and Competitive Advantage - The company is positioned as a leader in the high-end optical module market, with its advanced products expected to drive substantial revenue growth in the coming years [4]. - The ongoing development of high-speed optical modules is anticipated to contribute significantly to the company's performance, supported by its strategic partnerships and technological advancements [2][4].