ZHONGJI INNOLIGHT(SZ:300308) HTSC·2025-08-27 07:05Investment Rating - The investment rating for the company is maintained as "Buy" [1] Core Views - The company's H1 2025 performance met expectations, with significant improvement in gross margin. Revenue for H1 2025 was CNY 14.789 billion, a year-on-year increase of 37%, while net profit attributable to the parent company was CNY 3.995 billion, up 69% year-on-year [5] - The growth in performance is attributed to the rapid increase in demand for high-end products such as 800G, alongside a notable improvement in the company's gross margin [5][6] - The company is expected to continue benefiting from the release of AI computing power demand, reinforcing the "Buy" rating [5][8] Financial Performance - H1 2025 revenue from optical communication transceiver modules was CNY 14.4 billion, a 39% year-on-year increase. The company is advancing capacity construction projects to enhance high-end product output [6] - The overall gross margin for H1 2025 was 39.33%, an increase of 6.19 percentage points year-on-year, driven by product structure optimization and cost control [7] - The company’s sales, management, and R&D expense ratios decreased year-on-year, indicating effective cost management [7] Future Outlook - The optical module sector is expected to see continued growth driven by the expansion of GPU clusters and increasing demand for high-speed optical modules due to AI applications [8] - The company is positioned as a leading player in the global optical module market and is likely to benefit from the opportunities presented by the AI era [8] Earnings Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 has been adjusted to CNY 9.499 billion, CNY 13.454 billion, and CNY 15.765 billion respectively, reflecting an increase from previous estimates [9][12] - The target price for the company is set at CNY 374.49, based on a projected PE ratio of 31x for 2026 [9][11]