OPTOWIDE(SH:688195) SINOLINK SECURITIES·2025-10-29 09:23Investment Rating - The report gives a "Buy" rating for the company with a target price of 146.90 RMB based on a PE ratio of 158 for 2026 [4]. Core Views - The company focuses on the optical optoelectronics field, establishing differentiated competition and binding high-quality customers. It has shown steady growth with a revenue of 430 million RMB in the first three quarters of 2025, a year-on-year increase of 28%, and a net profit of 63.8 million RMB, up 15% year-on-year [2]. - The global optical module market is projected to grow from 14.7 billion USD in 2025 to 42.5 billion USD by 2032, with a compound annual growth rate (CAGR) of approximately 16% [2]. - The company has established partnerships with major global optical module manufacturers, which is expected to drive revenue growth due to strong downstream customer demand [2]. Summary by Sections Section 1: Focus on Optical Devices - The company has been deeply engaged in the optoelectronics field for over ten years, with a diversified product layout including precision optical components and fiber optic devices [14]. - The company has a relatively concentrated shareholding structure, with a stable core management team possessing strong technical backgrounds [21][25]. - The company is expected to benefit from increased demand for computing power, returning to a growth trajectory in 2024 with projected revenue of 450 million RMB, a 31% year-on-year increase [26]. Section 2: AI-Driven Growth in Optical Communication - The optical communication business is solid, benefiting from the AI wave, with the global optical module market expected to reach 12.62 billion USD in 2024 [38]. - The company’s products primarily serve the telecommunications and data communication markets, with significant growth opportunities driven by AI-related demand [40]. - Major cloud service providers are expected to increase capital expenditures significantly, which will create opportunities for the optical module and core component markets [40]. Section 3: Core Technology Platform - The company has established a systematic six-core technology platform through independent research and development, enhancing customer stickiness with customized services [70].