Shijia Photons(SH:688313) GUOTAI HAITONG SECURITIES·2026-01-31 11:59Investment Rating - The report maintains a "Buy" rating for the company [5][2] Core Views - The company's 2025 earnings forecast has been lowered, while the forecasts for 2026 and 2027 have been raised, with a target price adjustment upwards. The overall performance is slightly below expectations, but the long-term development trend remains positive, with business growth anticipated in 2026 [2][11] Financial Summary - Total revenue for 2023 is projected at 755 million, with a significant increase to 2,128 million in 2025, representing a growth of 98.0%. Net profit is expected to rise from -48 million in 2023 to 342 million in 2025, marking a 426.8% increase [4][12] - Earnings per share (EPS) is forecasted to be -0.11 in 2023, improving to 0.76 in 2025 and further to 2.21 in 2027 [4][12] - The return on equity (ROE) is expected to improve from -4.2% in 2023 to 17.0% in 2025, and then to 29.8% in 2027 [4][12] Business Growth Drivers - The company is expected to benefit from rapid growth in the data communication market driven by artificial intelligence, with significant demand for products such as AWG and MPO anticipated in 2026 [11][12] - The company has received validation from industry clients for its CW products and is planning to expand production to meet increasing customer demand [11][12] Target Price - The target price has been raised to 115.05, up from a previous 75.20, based on an industry average valuation and the company's market position [2][11]