Core Viewpoint - The demand for optical modules is surging due to the increasing need for computing power in the AI era, benefiting companies like Cambridge Technology [1] Financial Performance - For the first three quarters of 2025, the company reported revenue of 3.36 billion yuan, a year-on-year increase of 21.57% [1] - The net profit attributable to shareholders reached 259 million yuan, with a year-on-year growth of 70.88%, while the net profit excluding non-recurring items was 255 million yuan, up 91.93% [1] - In Q3 alone, the company achieved revenue of 1.325 billion yuan, a 32.29% increase year-on-year, and a net profit of 138 million yuan, reflecting a 92.92% growth [1] Business Drivers - The significant growth in revenue is primarily driven by the high-speed optical module and telecom broadband access businesses, with a notable increase in orders due to global data center construction [1] - The company has enhanced its production capacity and supply chain efficiency to meet the rising demand [1] Cash Flow and Financial Health - The operating cash flow for the first three quarters was -388 million yuan, a decline of 195.71% year-on-year, attributed to business expansion and increased payments for key materials [2] - Accounts receivable as of September 2025 stood at 1.992 billion yuan, a 65.31% increase, outpacing revenue growth [3] - The company's debt ratio rose to 62.37% by the end of Q3 2025, up from 52.57% at the end of 2024 [3] Strategic Initiatives - The company is accelerating domestic and international capacity expansion to address trade challenges and delivery pressures [4] - Cambridge Technology is planning to list H-shares, having completed the subscription process, with an expected fundraising of 4.616 billion HKD from the issuance of 67.01 million shares at a price of 68.88 HKD each [4] - As of October 27, 2025, the company's stock price reached 123.88 yuan per share, a 205.12% increase from the beginning of the year [4]

Core Insights - The core viewpoint of the report is that AoFei Data has shown a significant increase in net profit for the first half of the year, despite a decline in revenue from its "other internet comprehensive services" segment, while its main IDC services are expected to drive growth in the second half of the year [1] Financial Performance - The net profit attributable to the parent company for the first half of the year was 87.8969 million yuan, representing a year-on-year increase of 16.09% [1] - In Q2, the net profit attributable to the parent company reached 36 million yuan, showing a year-on-year growth of 43.37% [1] Business Segments - The "other internet comprehensive services" segment experienced a revenue decline of 47.42% year-on-year in the first half of the year [1] - The IDC services segment is expected to exhibit strong growth momentum, with anticipated revenue and EBITDA growth in the rapidly expanding AI market [1] Growth Potential - The company has a robust pipeline and has been rapidly expanding its data center capabilities, with 14 self-built and operated data centers across various cities, including Beijing, Guangzhou, and Shenzhen [1] - The operational cabinet count exceeds 57,000, with multiple large data center projects currently under construction [1] Future Projections - The projected net profit attributable to the parent company for 2025, 2026, and 2027 is expected to be 200 million, 290 million, and 410 million yuan, respectively [1] - Corresponding PE valuations for these years are estimated at 113, 79, and 55 times [1] - The report maintains an "overweight" rating for the company [1]