ZHONGJI INNOLIGHT(SZ:300308) CSC SECURITIES (HK) LTD·2025-07-16 07:06Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 210 CNY per share [1][9]. Core Insights - The company is expected to achieve a net profit of 3.6 to 4.4 billion CNY in the first half of 2025, representing a year-on-year growth of 52.6% to 86.6% [9]. - The growth is driven by strong demand for high-end optical modules, particularly the 800G modules, due to ongoing capital expenditures from major cloud service providers [9]. - The introduction of the 1.6T optical module is anticipated to further boost revenue, with initial shipments expected in Q4 2025 and a gradual increase in adoption in 2026 [9]. - The company has regained sales of its H20 product in China, alleviating previous concerns regarding tariffs and trade disputes, which is expected to stabilize and enhance growth [9]. - The company holds a leading position in the optical module market, with its 1.6T and silicon photonics technologies progressing well, ensuring its competitive edge in the AI-driven market [9]. Financial Summary - The company forecasts net profits of 8.32 billion CNY, 12.68 billion CNY, and 17.28 billion CNY for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 60.9%, 52.3%, and 36.4% [11]. - Earnings per share (EPS) are projected to be 7.42 CNY, 11.31 CNY, and 15.42 CNY for the same years, reflecting significant growth [11]. - The price-to-earnings (P/E) ratios are expected to be 24, 15, and 11 for 2025, 2026, and 2027 respectively, indicating a favorable valuation [11].