ZHONGJI INNOLIGHT(SZ:300308) KAIYUAN SECURITIES·2024-03-11 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is a global leader in optical modules, benefiting significantly from the growth in AI computing power, with strong growth potential in the optical communication market [4] - The company is expected to achieve net profits of 2.18 billion, 4.57 billion, and 5.47 billion yuan for the years 2023, 2024, and 2025 respectively, with corresponding EPS of 2.72, 5.69, and 6.82 yuan [4] Summary by Sections Company Overview - The company, Zhongji Xuchuang, is a leading global optical module provider, integrating R&D, design, packaging, testing, and sales of high-end optical communication transceivers [22][4] - The company has maintained a leading position in the optical module market, ranking first alongside Coherent in the 2022 Lightcounting report [22] Market Trends - The demand for optical modules is expected to grow significantly due to the rapid development of AI, with a shift from 200G and 400G to 800G optical modules [5][31] - The global optical module market is projected to grow from 11 billion USD in 2022 to 22.3 billion USD by 2028, with a compound annual growth rate of approximately 12% [68] Financial Performance - The company's revenue increased from 5.156 billion yuan in 2018 to 9.642 billion yuan in 2022, with a compound annual growth rate of 16.94% [31] - In the first three quarters of 2023, the company achieved a revenue of 7.030 billion yuan, a year-on-year increase of 2.41%, and a net profit of 1.296 billion yuan, a year-on-year increase of 52.01% [31] Competitive Advantages - The company has a strong R&D capability and has established a comprehensive layout in the optical module business, with significant competitive advantages in product recognition and market share [6][28] - The company has a stable shareholding structure and emphasizes employee management and core talent incentives [24] Future Outlook - The company is expected to benefit from the increasing demand for high-speed optical modules driven by AI and cloud computing, with a focus on developing new business lines in automotive optics and optical devices [6][28] - The company’s gross margin and net margin have been improving, with the gross margin reaching 31.75% and net margin 18.67% in the first three quarters of 2023 [38]