GOLDEN SUN SECURITIES·2025-11-16 10:01Investment Rating - The report maintains a "Buy" rating for key companies in the optical module industry, including Zhongji Xuchuang and Xinyi Sheng [10]. Core Viewpoints - The optical module industry is experiencing a "volume increase and price increase" trend, driven by high global computing power demand, particularly for 1.6T optical modules, which have seen significant price increases [1][19]. - The retail price of 1.6T optical modules has risen from approximately $1200 at launch to over $2000, indicating a strong supply-demand imbalance [2][20]. - The price decline of 800G and lower-speed optical modules has slowed, with some products stabilizing or even increasing in price due to sustained demand and improved production capabilities [3][24]. Summary by Sections Demand Drivers - The demand for 1.6T optical modules has been continuously revised upward by major overseas clients, leading to a tight supply-demand relationship and significant price increases [2][20]. - The limited number of manufacturers capable of mass-producing 1.6T optical modules, primarily top companies like Zhongji Xuchuang and Xinyi Sheng, contributes to the supply constraints [2][23]. Price Trends - The price decline for 800G and lower-speed optical modules has slowed, with the market experiencing a unique situation where demand growth outpaces historical price declines [3][25]. - The transition of 800G optical modules from development to accelerated mass production is stabilizing prices, with suppliers focusing on cost control and production capacity [3][25]. Capital Expenditure and Industry Expansion - Major cloud service providers are increasing their capital expenditures, with Google raising its 2025 capex guidance from $85 billion to $91-93 billion, indicating strong ongoing demand for computing power [4][29]. - Optical module manufacturers are actively expanding production capacity to meet the growing demand, with improvements expected in the supply of core optical chips and components [4][29]. Investment Recommendations - The report recommends focusing on key players in the computing power supply chain, particularly in the optical module sector, including Zhongji Xuchuang and Xinyi Sheng, as well as related companies in optical devices and cooling solutions [8][13].