EOPTOLINK(SZ:300502) CSC SECURITIES (HK) LTD·2025-07-23 07:45Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to less than 35% [6][11]. Core Insights - The company is expected to achieve a net profit of 3.7 to 4.2 billion RMB in the first half of the year, representing a year-on-year growth of 327.68% to 385.47% [7]. - The demand for overseas 800G optical modules is driving significant growth in the company's performance, with major clients including Meta, AWS, and Oracle [8]. - The company's Thai factory is enhancing its delivery capabilities to North American clients, benefiting from a temporary suspension of tariffs [8]. - The company has a strong pipeline of new technologies, including 1.6T optical modules and AEC cable modules, which are expected to maintain its leading position in the industry [8]. - Profit forecasts for 2025 to 2027 indicate net profits of 8.68 billion, 11.75 billion, and 14.07 billion RMB, with year-on-year growth rates of 206%, 35%, and 20% respectively [8]. Company Overview - The company operates in the communication industry and has a current A-share price of 174.20 RMB as of July 23, 2025 [2]. - The total number of shares issued is approximately 993.71 million, with 885.15 million A-shares [2]. - The company's market capitalization is approximately 154.19 billion RMB [2]. - The major shareholder is Gao Guangrong, holding 7.40% of the shares [2]. - The company has seen significant stock price increases over the past year, with a 132.4% rise [2]. Financial Performance - The company reported a significant increase in net profit for Q2, with estimates ranging from 2.13 to 2.63 billion RMB, reflecting a year-on-year growth of 294% to 386% [7]. - The company's R&D expenses for Q1 2025 were 118 million RMB, a year-on-year increase of 123% [8]. - The projected earnings per share (EPS) for 2025 to 2027 are 8.74, 11.82, and 14.16 RMB, respectively [10].