USISH(SH:601231) HTSC·2025-12-29 08:34Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 39.60 [1]. Core Views - The company is actively expanding its overseas production capacity for optical modules and is expected to transition from a leader in consumer electronics SiP to an integrated hardware platform for AI applications [1]. - The growth logic for the company includes capturing major overseas clients like Meta, advancing into AI servers and optical communications, and leveraging synergies with its parent company ASE [1][2]. - The AI glasses segment is identified as a key growth driver for the consumer electronics business from 2025 to 2027, with significant orders already secured [2]. - The company is enhancing its capabilities in AI data centers through a strategic focus on ASIC boards, optical modules, and power supply systems [3]. - The collaboration with ASE is expected to strengthen the company's position in the AI supply chain, focusing on system assembly and integration [4]. Summary by Sections Investment Rating - The company maintains a "Buy" rating with a target price of RMB 39.60, reflecting confidence in its growth potential [1]. Growth Opportunities - The company is set to build a complete production line for 800G/1.6T silicon photonic modules in Vietnam, aiming for a monthly output of 100,000 units [1]. - The AI glasses business is projected to significantly grow, with the company already securing major contracts for WiFi modules and SiP module business [2]. - The company anticipates over 200% year-on-year revenue growth in its AI acceleration card business for 2025 and 2026 [3]. Financial Projections - The forecasted net profit for the company from 2025 to 2027 is RMB 16.9 billion, RMB 25.3 billion, and RMB 33.1 billion, respectively, with corresponding EPS of RMB 0.75, RMB 1.13, and RMB 1.48 [5]. - The target price has been adjusted to RMB 39.60, reflecting a 35x PE for 2026, up from a previous estimate of 20x PE for 2025 [5].