EOPTOLINK(SZ:300502) CHINA DRAGON SECURITIES·2025-08-29 12:09Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has experienced significant growth in its performance, with a 282.64% year-on-year increase in revenue to 10.437 billion yuan and a 355.68% increase in net profit attributable to shareholders, reaching 3.942 billion yuan in the first half of 2025 [3][5] - The demand for high-speed optical modules is rapidly increasing, driven by advancements in AI technology and rising computing power needs, which has led to a 112.54% increase in optical module sales, totaling 6.95 million units [5] - The company has maintained high levels of R&D investment, amounting to 334 million yuan in the first half of 2025, a 157.56% increase year-on-year, which has helped establish technological barriers and product differentiation advantages [5] Financial Performance Summary - In the first half of 2025, the company's optical module production capacity reached 15.2 million units, a 66.67% increase year-on-year, supporting revenue growth [5] - The gross profit margin improved by 4.12 percentage points to 47.48% due to the increasing sales proportion of high-speed optical module products [5] - The company forecasts revenues of 24.08 billion yuan, 35.98 billion yuan, and 44.27 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 8.647 billion yuan, 13.085 billion yuan, and 16.191 billion yuan for the same years [6][7] Valuation Metrics - The current price of the company's stock is 354.95 yuan, with a market capitalization of approximately 352.72 billion yuan [3] - The price-to-earnings (P/E) ratios for the years 2025, 2026, and 2027 are projected to be 40.8, 27.0, and 21.8 respectively [6][7] - The average P/E ratio of comparable companies is 51.5 [5]