CIG(SH:603083) GUOTAI HAITONG SECURITIES·2026-01-23 05:04Investment Rating - The report assigns a rating of "Buy" with a target price of 161 CNY [6][13]. Core Insights - Cambridge Technology is a global leader in optical connectivity, broadband, and wireless solutions, actively investing in high-end optical modules to capitalize on the rapid development of AI [3][17]. - The optical module business is expected to exceed expectations due to significant investments from North American cloud vendors, with the global optical module market projected to reach approximately 13 billion USD by 2025 and 16 billion USD by 2026 [18][67]. - The company has strengthened its North American presence through strategic acquisitions, enhancing its R&D and sales capabilities, which positions it well for future growth [17][30]. Financial Summary - Total revenue is projected to grow from 3,087 million CNY in 2023 to 18,079 million CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 64.4% [5]. - Net profit attributable to shareholders is expected to increase from 95 million CNY in 2023 to 3,307 million CNY by 2027, with a significant growth rate of 86.7% in 2027 [5]. - Earnings per share (EPS) is forecasted to rise from 0.27 CNY in 2023 to 9.38 CNY by 2027 [5]. Business Overview - The company has three main product lines: telecommunications broadband products, wireless networks and small base stations, and high-speed optical modules, with broadband products contributing the largest revenue share [31]. - The company has established a global footprint with production and R&D facilities in various regions, including the U.S., Europe, and Malaysia, to meet the demands of its international customer base [46][50]. Market Trends - The North American market is experiencing a surge in capital expenditure driven by AI, with significant growth expected in the optical module sector as cloud vendors increase their investments [56][59]. - The demand for high-speed optical modules is anticipated to grow rapidly, with the company being one of the early developers of 400G/800G modules, positioning it favorably in the market [18][22]. Revenue Forecast - Revenue from high-speed optical components and modules is projected to grow significantly, with estimates of 11.26 billion CNY in 2025 and 137.69 billion CNY by 2027, reflecting a year-on-year growth rate of 534% in 2026 [23][24].