EOPTOLINK(SZ:300502) CMS·2025-10-30 06:02Investment Rating - The report maintains a rating of "Buy" for the company [4] Core Views - The company experienced a significant year-on-year revenue growth of 221.70% in Q3 2025, with total revenue reaching 165.05 billion yuan [1] - The net profit attributable to the parent company for Q3 2025 was 63.27 billion yuan, reflecting a year-on-year increase of 284.38% [1] - The company’s growth momentum remains strong despite a short-term decline in revenue due to changes in large customer delivery schedules [1][8] - The demand for optical modules is robust, and the company is expanding its production capacity to meet this demand [8] Financial Data and Valuation - Total revenue projections for 2025, 2026, and 2027 are 256.1 billion yuan, 368.6 billion yuan, and 459.0 billion yuan respectively, with corresponding net profits of 93.8 billion yuan, 134.1 billion yuan, and 167.8 billion yuan [3][8] - The company’s PE ratios for 2025, 2026, and 2027 are projected to be 43.0, 30.1, and 24.0 respectively [3][15] - The company’s return on equity (ROE) is expected to be 72.8% in 2025, decreasing to 44.8% by 2027 [15] Revenue and Profitability - The company’s gross margin for Q3 2025 improved to 46.94%, while the net profit margin increased to 39.30% [8] - The company’s inventory increased by 6.59 billion yuan to 66.03 billion yuan, indicating a buildup in stock due to delivery schedule changes [8] - The company is focusing on R&D innovation, successfully launching new high-speed optical modules, which is expected to enhance profitability further [8]