Investment Rating - Investment rating: Positive (maintained) [1] Core Insights - The silicon photonics era is accelerating, with leading companies showcasing competitive advantages and numerous new technologies creating investment opportunities [5][12] - The communication industry is experiencing continuous upgrades, with the demand for AI computing driving growth in the optical communication sector [5][12] - The 26th China International Optoelectronic Exposition (CIOE 2025) highlighted the maturity and market focus on silicon photonics technology, which is becoming the mainstream solution for 1.6T high-speed optical modules [5][12] Summary by Sections 1. Investment Outlook - The report emphasizes the competitive advantages of leading companies in the silicon photonics era and the emergence of new technologies such as OCS, hollow-core fibers, thin-film lithium niobate, and CPO [12] - The 800G optical module has become mainstream, with 1.6T expected to ramp up production imminently [13][14] - The report identifies key investment targets including Zhongji Xuchuang, NewEase, and Tianfu Communication, with beneficiaries including Huagong Technology and Guangxun Technology [7][14] 2. Optical Modules - Zhongji Xuchuang has begun mass production of 1.6T optical modules and is developing 3.2T products, while NewEase has significantly ramped up its 1.6T module supply to overseas clients [13][14] - The report notes that 800G has become the mainstream technology, with many manufacturers actively preparing for 3.2T technology [14] 3. Silicon Photonics Technology - The report highlights the rapid development of silicon photonics technology, with increasing market attention and maturity for OCS, CPO, and thin-film lithium niobate technologies [19][20] - Companies like Huagong Technology are advancing their CPO technology, showcasing integrated chips with low power consumption and high bandwidth density [19][20] 4. Optical Chips - The demand for CW laser chips is increasing, with companies like Yuanjie Technology successfully mass-producing CW70mW laser chips [25] - Long光华芯 has released a 200mW Uncool CW DFB optical communication chip to support the silicon photonics integration needs of 800G and 1.6T optical modules [25] 5. Cables - The report notes the gradual advancement of optical and copper cable solutions, with hollow-core fibers gaining attention [27] - Long飞公司 demonstrated a 100km hollow-core fiber link with a low attenuation of 0.089dB/km [27] 6. Investment Recommendations - The report suggests focusing on seven key industry directions for investment, including network equipment, AIDC data center construction, IT equipment, computing power leasing, cloud computing platforms, AI applications, and satellite internet & 6G [31][32] - Recommended targets for optical modules and devices include Zhongji Xuchuang, NewEase, and Tianfu Communication, with beneficiaries such as Yuanjie Technology and Huagong Technology [31][32]

. - e G * 4 : . .. 20 00 250 p 6 2 4 4 (L) HGTECH = = alps y and and the will a the p and and the may be age of K 源于AI算力需求爆发式增长对"高速低功耗互连"的迫切需求，硅光技术在光模块领域的渗透率逐步提升。在第二十六届中国国际光电博览会(CIOE)上，华工 科技（000988）核心子公司华工正源携第二代单波400G光引擎、3.2T CPO光引擎以及业内首发的PCIe6.0光模块等产品亮相。 9月11日，华工正源总经理胡长飞接受证券时报记者采访时表示，硅光技术已从可选路径成为明确方向，未来CPO、LPO等多种方案将分场景并存。 硅光渗透成为明确方向 自去年起，由于传统磷化铟EML激光器出现产能瓶颈，硅光技术在400G及更高速率光模块中快速推广。其优势不仅体现在更稳定的交付能力，更在于显著 降低的功耗和更少的激光器用量。"随着通道数不断提升，硅光在集成度和成本方面的优势越发明显。"胡长飞表示。 华工正源早在2019年就布局硅光技术研发，已实现100G、200G、400G、800G等全系列硅光产品的 ...

9月11日，在第26届中国国际光电博览会（以下简称"光博会"）上，人潮涌动，新易盛、中际旭创、光 迅科技等光模块"顶流"云集。证券时报记者在现场看到，头部光通信厂商纷纷展示了当前最高端的1.6T 光模块产品，现场"保密"级别显著升级，不少产品现场不许拍照或者需要预约参观，有观众动笔记下产 品明细。 作为人工智能（AI）产业的核心基础设施之一，光模块指数板块今年以来涨幅翻倍，板块内上市公司 合计流通市值最新突破1.1万亿元。 本届光博会展会现场，供应商、客户、投资人来访络绎不绝。据会务官方介绍，本届展会聚集全球超 3800家光电企业，首日观众超过7万人次，同比去年增长17%。 记者注意到，新易盛、光迅科技、联特科技、索尔思光电、高意等海内外厂商都展出最新1.6T光模块样 品。本次代表中际旭创参展的，是其面向国内市场的子公司智禾光通，该公司展出了多款400G/800G高 速光模块等产品。 作为当前光通信领域高端主流技术，传输速率达到1.6T的光模块代表了行业前沿水平，应用于超大型数 据中心、AI算力集群、超算中心等对带宽需求极高的场景，今年开始起量。 有光模块厂商驻场负责人向记者介绍，公司早在2023年就有布局1 ...

Core Viewpoint - The 26th China International Optoelectronic Exposition (CIOE 2025) will take place from September 10 to 12, 2025, showcasing advancements in optical devices and modules, particularly from Zhao Chi Co., Ltd. [1] Company Developments - Zhao Chi's subsidiary, Zhao Chi Rui Gu, presented its upgraded 850nm multi-mode optical module, which is designed to meet the demands of data center and enterprise network upgrades, covering SFP/SFP+/SFP28/QSFP+/QSFP28 packaging and 1G to 100G models [1] - The company also exhibited several products in the 400G to 800G range, fully compatible with high-speed communication scenarios in data centers, cloud networks, and AI applications [1] - The research and design of the 1.6T OSFP DR8 optical module has been completed, with sample production expected by the end of 2025 [1] Future Outlook - The company plans to increase investment to overcome the bottleneck in high-end optical chips, aiming for domestic production of 100G/lane PAM4 high-speed optical chips for 800G/1.6T optical modules [1] - There will be an accelerated development of LPO, CPO, silicon photonics technology, and Micro LED optical communication technology [1]

Group 1 - The 26th China International Optoelectronic Exposition (CIOE2025) will be held from September 10 to 12, 2025 [1] - Zhaochi Co., Ltd. (002429) showcased its optical devices and modules subsidiary, Zhaochi Ruigu, at the event [1] - Zhaochi Ruigu's upgraded 850nm multi-mode optical module is designed to meet the upgrade needs of data centers and enterprise networks, covering SFP/SFP+/SFP28/QSFP+/QSFP28 packaging and 1G to 100G specifications [1] Group 2 - The company also exhibited several products in the 400G to 800G range, suitable for high-speed communication scenarios in data centers, cloud networks, and AI [1] - The research and design work for the 1.6T OSFP DR8 optical module has been completed, with sample launch expected by the end of 2025 [1] - The company plans to increase investment to overcome high-end optical chip bottlenecks and achieve domestic production of 100G/lane PAM4 high-speed optical chips for 800G/1.6T optical modules [1] Group 3 - The company will accelerate the development of LPO, CPO, silicon photonics technology, and Micro LED optical communication technology [1]

Summary of Key Points from Conference Call Industry Overview - The conference call discusses the optical module market, highlighting a surge in demand driven by increased interconnect density, which is expected to rise by 5-10 times. This trend is leading to a favorable industry outlook, with tight supply of chips and devices making delivery capability a key competitive factor for manufacturers [1][5][11]. Core Insights and Arguments - Major players such as Manta, Oracle, and NVIDIA are experiencing rapid demand growth, with a focus on delivery capabilities and supply chain integration expected to dominate competition by 2026 [1][4]. - NVIDIA's Ruby architecture significantly enhances network-side performance, doubling the configuration of network cards and driving a substantial increase in optical module demand. The bandwidth and pricing are rapidly increasing with the iteration of network cards [1][6][8]. - The optical module market is transitioning from an order placement phase to a delivery phase, with a projected demand for 800G optical modules exceeding 40 million units by 2026. This shift is expected to create significant supply pressure, making delivery capability crucial [3][10]. - The market is currently characterized by explosive demand and limited overseas supply, leading to optimistic delivery conditions for manufacturers in 2026, positively impacting prices and profit margins [11][12]. Competitive Landscape - The competitive landscape in the optical communication industry is shifting, with leading companies focusing on delivery capabilities and supply chain management. The integration of silicon photonics technology is becoming essential for major manufacturers [3][4][10]. - VeriSilicon is positioned as a leader in new technology solutions, including silicon photonics and LPO, which are expected to effectively address supply issues in a tight global supply chain [13][14]. Emerging Technologies and Trends - Liquid cooling technology is identified as the ultimate solution for high-density AI computing environments, with major companies gaining advantages in this area due to their experience and system design capabilities [2][27]. - Future developments in liquid cooling may include two-phase cooling and silent cooling, which are suitable for high-density power processing [28][29]. Market Dynamics - The current market is experiencing a price boom due to explosive demand and constrained supply, particularly in segments with high overseas supply. This situation is expected to favor manufacturers' pricing and profit margins in the coming years [11][12]. - The upcoming challenges for manufacturers include ensuring stable delivery capabilities amidst healthy and sustained demand, with a focus on inventory management and production stability [10][12]. Conclusion - The optical module market is poised for significant growth driven by technological advancements and increasing demand for high-performance computing and communication devices. Companies that can effectively manage their supply chains and innovate in technology will likely emerge as leaders in this evolving landscape [1][3][11].

Revenue Performance - The company's revenue for the first half of 2025 reached 5.242 billion CNY, representing a year-on-year growth of 68.59% [2] - In Q2 2025, revenue exceeded 3 billion CNY, marking a historical high [2] - Data and access business revenue was 3.715 billion CNY, up 150% year-on-year, accounting for 70% of total revenue [2] - Transmission business revenue was 1.517 billion CNY, down 4% year-on-year [2] - Overseas revenue amounted to 1.308 billion CNY, a year-on-year increase of 24.39%, making up 25% of total revenue [2] Profit Performance - The net profit attributable to shareholders for the first half of 2025 was 372 million CNY, a year-on-year increase of 78.98% [2] - Excluding financial expenses, the profit growth rate reached 131% [2] - The non-recurring net profit was 360 million CNY, reflecting a year-on-year growth of 74.65% [2] - Basic earnings per share were 0.47 CNY, up 74.07% year-on-year [2] - Return on equity was 4.05%, an increase of 1.6 percentage points year-on-year [2] Operational Performance - Sales receipts for the first half of 2025 totaled 6.748 billion CNY, a year-on-year increase of 96% [2] - Procurement payments reached 6 billion CNY, up 104% year-on-year due to scale growth and future order preparations [2] - Operating cash flow showed significant improvement, with a net outflow of 100 million CNY in the first quarter turning into a net inflow of 5.23 million CNY in Q2 [3] Market Outlook - The domestic market is expected to continue its growth trend, with major clients increasing capital expenditures [3] - The company anticipates a gradual increase in the proportion of silicon photonics products in its revenue [3] - The company plans to adjust production capacity based on market and customer demand [3] Margin Analysis - The gross margin decreased in Q2 due to product structure impacts in the transmission business and increased competition leading to price reductions [3] - The company expects cost reduction effects to gradually manifest, allowing gross margins to return to normal levels [3] Product Demand - The demand for optical modules increased significantly in the first half of the year, with stable demand expected in the second half [5] - The company is focusing on 400G optical modules for 2025, with an anticipated increase in the proportion of 800G modules next year [5] - The company is prepared for potential material supply constraints due to rapid growth in demand for 400G and 800G modules [5]

Core Viewpoint - The article highlights the transformation of a traditional manufacturing company into a leader in the optical module market through strategic acquisitions and technological advancements, particularly in the context of the AI computing wave and the global demand for high-performance optical modules [1][19]. Group 1: Company History and Transformation - In 1987, a small electric motor winding equipment factory in Shandong faced challenges in the traditional manufacturing sector, with annual revenue stagnating around 200 million yuan and net profit below 50 million yuan [1][7]. - The turning point came in 2017 when the company invested 2.8 billion yuan to acquire Suzhou Xuchuang, shifting focus to the optical communication field and successfully launching high-performance optical modules [1][11]. - By 2023, the company achieved a revenue of 10.7 billion yuan and a net profit of 2.2 billion yuan, marking a significant increase of 78% year-on-year [19]. Group 2: Industry Dynamics and Market Position - The optical module industry has seen its iteration cycle compressed from four years to two years, indicating rapid innovation and competition [2]. - The company has established itself as a global leader in the optical module market, with a market share exceeding 40% in the 800G segment by 2024 [22]. - The company’s revenue surged to 23.9 billion yuan in 2024, with a net profit of 5.2 billion yuan, reflecting a year-on-year increase of 138% [19][22]. Group 3: Technological Advancements - The company has been proactive in technological innovation, with R&D investments consistently accounting for nearly 10% of revenue, leading to breakthroughs in key technologies such as silicon photonics and coherent detection [22][24]. - The introduction of the 1.6T optical module in 2023 positioned the company at the forefront of the industry, with plans for large-scale production starting in 2025 [22][24]. - The company’s proprietary 12nm silicon photonic chip has achieved over 90% yield in mass production, enhancing its competitive edge in the high-performance optical module market [22][24]. Group 4: Future Outlook - The article anticipates that while traditional pluggable optical modules will continue to dominate the market in the next five years, silicon photonic solutions will emerge as a cornerstone for overcoming bandwidth and power consumption challenges [26][27]. - The market is expected to see a significant increase in demand for 800G and 1.6T solutions, with the company poised to maintain its global leadership position during this transition [24][27]. - The integration of silicon photonics technology is projected to enhance performance and reduce costs, making it a preferred solution in the evolving optical module landscape [24][27].

Summary of the Conference Call for 光迅科技 Company Overview - **Company**: 光迅科技 - **Industry**: Optical Communication Technology Key Points and Arguments Financial Performance - In the first half of 2025, 光迅科技 achieved revenue of 52.32 billion, a year-on-year increase of 62.47%, marking a historical high, primarily driven by strong growth in data and access businesses, which accounted for 70% of total revenue [2][3] - Net profit attributable to shareholders increased by 78.98% to 3.72 billion, with a 131% increase when excluding financial expenses, indicating significant improvement in profitability due to rising market demand and enhanced operational efficiency [2][3] - Sales collection reached 67.48 billion, up nearly 96% year-on-year, while procurement payments rose by 104% to 60 billion [3] Market Dynamics - Major domestic clients have increased investments, positioning 光迅科技 as a leading supplier, with expectations for continued market growth in 2026, although overall trends may be affected by GPU supply constraints [2][6] - The company’s overseas revenue reached 13 billion, a 24% increase year-on-year, but the proportion of overseas revenue declined by 9 percentage points [3] Technological Advancements - Significant progress in silicon photonics technology, with single-mode silicon photonics products now exceeding 60% of the product mix, enhancing market share through high integration, yield, cost advantages, and superior supply chain scalability compared to traditional laser products [2][7] - The company has invested heavily in silicon photonics R&D, launching the 400G DR4 silicon photonics module in 2023, achieving historical peaks in 2024 and 2025 [7] Production Capacity - Total production capacity is 700,000 units per month, with 400,000 units in domestic markets and 300,000 units overseas. The company is rapidly expanding and adjusting capacity distribution based on market demand, with a significant expansion project in Wuhan [2][9] Profitability and Cost Management - A decline in gross margin in Q2 was attributed to product mix and domestic market competition, but it is expected to recover as cost reduction measures take effect [4][11] - The company anticipates stable growth in demand for the second half of the year, with overseas transmission business expected to grow [4][16] Future Outlook - The company is actively engaging in emerging technologies such as CPO and DCI to solidify its industry-leading position, with expectations for significant growth in the 800G market in 2026 [4][16][21] - The transition to 800G modules is anticipated to accelerate in 2026, with signs of increasing domestic market demand [13] Supply Chain and Material Management - The company is facing short-term capacity constraints for CW Laser due to rapid scaling of silicon photonics technology, but this is not expected to become a long-term bottleneck [22] - Anticipated supply tightness and price increases for key materials like DSP and FAU in 2026, with proactive inventory management strategies in place to mitigate risks [24] Additional Important Insights - The company maintains a strong position in the domestic internet market, with significant contributions from internet firms in its revenue structure [12] - The development of 25G and 50G ports is gaining traction, with the company closely monitoring industry trends and participating in relevant R&D [19] - The domestic AI industry is rapidly evolving, with the company providing multi-mode products and planning to expand into CPO and NPO products [20]

Core Insights - The global market for silicon photonic chips is expected to exceed $8 billion by 2025, driven by demand from AI computing and data centers [1] Technology Developments - Heterogeneous integration at the material level is crucial, with Intel and UC teams achieving breakthroughs in laser integration and on-chip light source technology [1] - CPO technology is leading architectural changes, with companies like Broadcom and Zhongji Xuchuang launching low-power, high-capacity products [1] - On the manufacturing side, SMIC and Huagong Technology are improving yield rates and reducing costs to promote commercialization [1] Market Landscape - Data centers are the core application area, with the silicon photonic module market projected to reach $5.5 billion by 2025; Chinese companies like NewEase and Zhongji Xuchuang are capturing market share in the 400G/1.6T module sector [1] - Smart driving is emerging as a new growth point, with companies like Hesai Technology and Huagong Technology gaining recognition from automakers for their silicon photonic radar and vehicle-mounted modules [1] Challenges and Opportunities - Current challenges include transmission loss and supply chain risks; however, policy support and capital investment are enabling Chinese companies to make breakthroughs [1] - The future outlook suggests the potential for a trillion-yuan industry cluster, positioning China to dominate the global silicon photonic market [1]