ZHONGJI INNOLIGHT(SZ:300308) GOLDEN SUN SECURITIES·2025-11-03 10:28Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company achieved a record high profit margin in Q3 2025, with revenue of 10.22 billion yuan, a year-on-year increase of 56.8%, and a net profit of 3.14 billion yuan, up 125% year-on-year [1]. - The increase in profit margins is attributed to scale effects, a higher proportion of silicon photonics shipments, and increased sales of 800G and 1.6T products [1]. - The company is experiencing significant inventory growth, reaching 10.9 billion yuan, indicating a proactive approach to meet future demand [1]. - The company is benefiting from the global ramp-up of 800G optical modules and is entering the production ramp-up phase for 1.6T products, with expectations for strong growth in the coming quarters [2]. - The company has developed capabilities for 3.2T products and is actively exploring advanced areas such as LPO/LRO and CPO, laying the groundwork for diversified future demand [2]. - The potential market space for scale-up is projected to be 5-10 times that of scale-out, positioning the company to lead in the next round of technological upgrades [2]. Financial Summary - The company’s revenue is projected to grow significantly, with estimates of 35.28 billion yuan in 2025, 72.93 billion yuan in 2026, and 102.64 billion yuan in 2027, reflecting growth rates of 47.8%, 106.8%, and 40.7% respectively [5]. - The net profit is expected to reach 10.40 billion yuan in 2025, 22.28 billion yuan in 2026, and 31.36 billion yuan in 2027, with year-on-year growth rates of 101.2%, 114.2%, and 40.7% respectively [5]. - The report projects an increase in EPS to 9.36 yuan in 2025, 20.05 yuan in 2026, and 28.22 yuan in 2027 [5]. - The company’s P/E ratio is expected to decrease from 50.5 in 2025 to 16.8 in 2027, indicating improving valuation metrics as earnings grow [5].