EOPTOLINK(SZ:300502) CHINA DRAGON SECURITIES·2024-05-06 05:30Investment Rating - The investment rating for the company is "Buy" (首次覆盖) [1] Core Views - The demand for optical modules is rapidly increasing, leading to impressive performance in Q1. The development of AI large models is driving greater network bandwidth requirements for AI data centers, which in turn accelerates the development and application of high-speed optical modules [1] - In Q1 2024, the company achieved revenue of 1.113 billion yuan, a year-on-year increase of 85.41%, and a net profit attributable to shareholders of 325 million yuan, a year-on-year increase of 200.96% [1] - The company has successfully launched the latest 800G/1.6T optical module products based on single-wave 200G optical devices, and its product portfolio includes 100G, 200G, 400G, 800G, and 1.6T optical modules [1] Financial Performance Summary - In 2023, the company reported revenue of 3.098 billion yuan, a decrease of 6.43% year-on-year, and a net profit of 688 million yuan, down 23.82% year-on-year [2] - The company is expected to achieve net profits of 1.511 billion yuan, 2.062 billion yuan, and 3.013 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 39.4, 28.8, and 19.7 [1][2] - The gross profit margin for Q1 2024 was 42%, an increase of 7.96 percentage points year-on-year, and the net profit margin was 29.16%, up 11.19 percentage points year-on-year [1] Revenue and Profit Forecast - Revenue is projected to grow significantly, with estimates of 5.529 billion yuan in 2024, 7.882 billion yuan in 2025, and 10.854 billion yuan in 2026, reflecting growth rates of 137.5%, 31.1%, and 10.3% respectively [2] - The company’s return on equity (ROE) is expected to improve, reaching 22.0% in 2024, 23.4% in 2025, and 25.7% in 2026 [2]