EOPTOLINK(SZ:300502)2024-05-01 15:00Investment Rating - The report maintains a "Recommended" investment rating for the company [1]. Core Views - The company reported a revenue of 3.098 billion yuan in 2023, a decrease of 6.43% year-on-year, and a net profit attributable to shareholders of 688 million yuan, down 23.82%. In Q1 2024, the company achieved a revenue of 1.113 billion yuan, an increase of 85.41%, and a net profit of 325 million yuan, up 200.96% [1]. - Profitability began to improve rapidly from Q4 2023, with Q1 2024 performance exceeding expectations. The gross margin for 2023 was 30.99%, down 5.67 percentage points, and the net margin was 22.22%, down 5.07 percentage points. Despite a decline in overall performance in 2023, Q4 saw significant increases in revenue and net profit due to high-margin products like 400G and 800G [1]. - The demand for AI is expected to drive rapid growth in the industry, with the company positioned as a leader. The report anticipates continued high growth in revenue, projecting 5.683 billion yuan in 2024, 8.196 billion yuan in 2025, and 11.453 billion yuan in 2026, with corresponding growth rates of 83.47%, 44.21%, and 39.75% respectively [1][2]. Financial Summary - The company’s revenue is projected to grow significantly over the next three years, with expected revenues of 5.683 billion yuan in 2024, 8.196 billion yuan in 2025, and 11.453 billion yuan in 2026. The corresponding net profits are forecasted to be 1.416 billion yuan, 2.009 billion yuan, and 2.669 billion yuan respectively [2][3]. - The report indicates that the company’s PE ratios for 2024, 2025, and 2026 are expected to be 43.77, 30.84, and 23.22 respectively, reflecting the company's strong market position and technological competitiveness [2][3].