USISH(SH:601231) Orient Securities·2026-01-24 15:28Investment Rating - The report maintains a "Buy" rating for the company with a target price of 32.48 CNY based on a 29x PE valuation for comparable companies in 2026 [3][6]. Core Insights - The company is actively expanding its optical communication business and enhancing its product layout in cloud and terminal modules, aiming to integrate into the global optical interconnect ecosystem [11]. - The company has strong competitive advantages in technology, industrial synergy, and production capacity, which are expected to support its growth in the optical communication sector [11]. - The company is also focusing on strengthening its product offerings related to cloud computing and data centers, with promising growth in its server board business [11]. - The smart glasses market is projected to grow significantly, and the company is well-positioned to benefit from this trend as a leading manufacturer of SiP modules for smart wearable devices [11]. Financial Forecast and Investment Recommendations - The company’s earnings per share (EPS) are projected to be 0.75 CNY, 1.12 CNY, and 1.37 CNY for the years 2025 to 2027, respectively, with adjustments made to revenue and gross margin forecasts [3][12]. - Revenue is expected to decline slightly in 2025 before rebounding with growth rates of 18% and 12% in 2026 and 2027, respectively [5][12]. - The company’s net profit is forecasted to recover significantly, with a projected increase of 50% in 2026 and 22% in 2027 [5][12].