ZHONGJI INNOLIGHT(SZ:300308)2024-04-29 14:31Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Insights - The company, Zhongji Xuchuang (300308), reported a revenue of 10.718 billion yuan in 2023, an increase of 11.16% year-on-year, and a net profit attributable to shareholders of 2.174 billion yuan, up 77.58% [3][4]. - In Q1 2024, the company achieved a revenue of 4.843 billion yuan, reflecting a significant growth of 163.59%, with a net profit of 1.009 billion yuan, marking a 303.84% increase [3]. - The introduction of high-margin products like 400G and 800G has significantly boosted the company's profit margins, with a gross margin of 32.99% in 2023, up 3.68 percentage points, and a net margin of 20.60%, up 6.80 percentage points [3][4]. - The demand for optical modules, crucial for AI applications, is expected to grow as AI technology advances, with the global optical module market projected to grow at a CAGR of 11% from 2022 to 2027, potentially exceeding 20 billion USD by 2027 [3]. - The company is well-positioned to capture market share in the upcoming 1.6T optical module market due to its stable market share and first-mover advantage [3]. Financial Summary - The company forecasts revenues of 25.034 billion yuan, 31.655 billion yuan, and 36.492 billion yuan for 2024, 2025, and 2026, respectively, representing growth rates of 133.57%, 26.45%, and 15.28% [4]. - The projected net profits for the same years are 5.183 billion yuan, 6.416 billion yuan, and 7.412 billion yuan, with growth rates of 138.48%, 23.77%, and 15.53% [4]. - The diluted EPS is expected to be 6.46 yuan, 7.99 yuan, and 9.23 yuan for 2024, 2025, and 2026, with corresponding PE ratios of 29.07, 23.49, and 20.33 [4].