ZHONGJI INNOLIGHT(300308) 长江证券·2024-05-22 01:43Investment Rating - Buy rating maintained for Zhongji Innolight (300308 SZ) [5] Core Views - Product structure continues to upgrade, with inventory levels rising, indicating high industry prosperity [2][5] - Gross margin remains resilient, and scale effects are evident on the cost side [5] - With the release of NVIDIA's Blackwell series products, 1 6T module commercialization is imminent, and the company's certification progress is positive [2][5] - The company leads in new solutions such as silicon photonics and LPO, solidifying its position as an industry leader [5][6] Financial Performance - 2023 revenue reached RMB 10 72 billion, up 11 2% YoY, with net profit attributable to parent company of RMB 2 17 billion, up 77 6% YoY [5] - Q1 2024 revenue was RMB 4 84 billion, up 163 6% YoY, with net profit attributable to parent company of RMB 1 01 billion, up 303 8% YoY [5] - Q1 2024 gross margin was 32 8%, up 3 2 pct YoY, with net margin at 21 2%, up 7 9 pct YoY [5] Product and Technology - High-speed optical communication modules generated RMB 9 8 billion in revenue in 2023, up 10% YoY, with 400G and 800G modules driving growth [5] - The company is advancing in silicon photonics and LPO solutions, with 1 6T LPO DR8 products demonstrated at OFC 2024 [6] - 1 6T products are in the sampling and testing phase with overseas key customers, with certification expected in H2 2024 [7] Industry Outlook - The company's inventory increase reflects high industry prosperity, driven by demand for high-end products like 800G modules [5] - The release of NVIDIA's Blackwell series is expected to accelerate the adoption of 1 6T modules [5][7] Profit Forecast - 2024-2026 net profit attributable to parent company is forecasted at RMB 5 19 billion, RMB 7 31 billion, and RMB 8 61 billion, with YoY growth of 139%, 41%, and 18%, respectively [6] - Corresponding PE ratios are 26x, 19x, and 16x for 2024-2026 [6]