Core Viewpoint - The report from CITIC Securities indicates that the wave of AI network construction is restarting due to the synergy of AI inference and training demands, along with the maturity of ASIC chips [1] Group 1: AI Network Construction - The demand for computing power and network devices is expected to remain strong in the future [1] - The trend of increasing volume and upgrading of interconnection components such as optical modules and copper cables will become more apparent [1] Group 2: Investment Recommendations - It is suggested to focus on leading companies in the fields of high-speed optical modules, optical devices, optical chips, and Active Electric Cables (AEC) / copper cables [1]

Core Viewpoint - The Hubei Provincial Institute of Metrology and Testing Technology has developed innovative testing technology for 800G ultra-high-speed optical modules, addressing electromagnetic compatibility (EMC) testing challenges and contributing to the advancement of the optical communication industry in Wuhan's "Optical Valley" [1][2]. Group 1: Technological Innovations - The institute has created a method for EMC radiation emission testing of 800G optical modules, overcoming the lack of international standards and high-frequency testing technology above 40GHz [1][2]. - A detachable standardized testing tool has been designed, compatible with mainstream packaging, ensuring uniform testing conditions across different enterprises [2]. - The technology employs a harmonic mixer down-conversion technique to convert signals above 40GHz into measurable ranges, facilitating the transition from "following standards" to "defining standards" in EMC testing [2]. Group 2: Industry Impact - The developed technology has provided over 50 high-frequency EMC testing services to optical communication and device companies in Hubei, reducing the testing cycle from 15 days to 10 days, resulting in a 33% efficiency improvement and saving over 20 million yuan in R&D costs [3]. - The optimization of optical module EMC performance has contributed to the green development of computing networks, with the energy efficiency ratio (PUE) improving from 1.4 to 1.25, leading to an annual electricity saving of over 12 million kWh and a reduction of 7,500 tons of carbon emissions [3].

Industry Overview - The optical fiber amplifier is a core component in optical fiber communication, primarily used to enhance optical signals for high-quality, long-distance transmission [1][14] - The demand for optical fiber amplifiers in China is increasing due to the implementation of the "Broadband China" strategy and the rapid development of 5G networks and data centers [1][14] - The market size for optical fiber amplifiers in China is projected to reach approximately 19.387 billion yuan by 2024 [1][14] Market Dynamics - Government investments in communication infrastructure are driving the growth of the optical fiber amplifier market, facilitating the widespread adoption of broadband internet and 5G networks [1][14] - There is a growing consumer demand for high-speed, stable, and secure network services, prompting operators and manufacturers to enhance research and development of optical fiber amplifiers [1][14] Industry Development History - The optical fiber amplifier industry in China started relatively late, initially relying on foreign technology until the successful development of the Erbium-Doped Fiber Amplifier (EDFA) in 1987 [6] - Domestic companies like Yifang Communication and Huawei have made significant advancements in EDFA technology, achieving performance levels close to international standards [6][7] Industry Chain - The upstream of the optical fiber amplifier industry chain includes raw materials such as specialty optical fibers, pump sources, optical components, and electronic components [9] - The midstream involves the manufacturing of optical fiber amplifiers, while the downstream applications span communication networks, data centers, broadcasting networks, military, aerospace, and industrial lasers [9] Key Companies - Major companies in the optical fiber amplifier industry include Huawei, ZTE, and Yifang Communication, which leverage technological innovation and product development to capture significant market shares [17][18] - ZTE reported a projected revenue of 121.3 billion yuan in the telecommunications equipment manufacturing sector for 2024 [19] - Yifang Communication is recognized as a leading supplier in the optical communication device market, with a focus on maintaining competitive advantages through high R&D investment [21] Future Trends - The optical fiber amplifier industry is expected to focus on high-performance and low-noise technology breakthroughs to meet the demands of long-distance transmission and high-speed communication [24] - The integration of AI for real-time monitoring and adaptive control of optical signals is anticipated to become mainstream, enhancing network performance and operational efficiency [25] - The industry is also moving towards miniaturization and energy efficiency, with advancements in silicon photonics technology driving the development of compact amplifier modules [27] - Emerging applications in quantum communication, laser radar, and medical optics are expected to expand the role of optical fiber amplifiers beyond traditional telecommunications [28]

Group 1 - The article highlights the importance of weekly announcements from Sunday to Thursday, which include significant stock market updates such as suspensions, increases or decreases in holdings, investment wins, acquisitions, earnings reports, unlocks, and high transfers [1] - It emphasizes the collaboration of a company with Shanghai Museum and other IPs to develop a series of cultural and creative products, as well as the establishment of a joint venture primarily focused on producing military silencing materials [1] - Another company is noted for integrating anti-quantum password algorithms and quantum random number chips into its products, showcasing advancements in military, quantum technology, cloud computing, digital currency, blockchain, AI, and chips [1] Group 2 - A company is investing nearly 6 billion in the optical communication sector, indicating a strong commitment to robotics, new energy vehicles, and optical modules [1]

Core Viewpoint - The company has achieved significant milestones in the optical communication chip market, with a focus on high-speed products and a broad customer base [1] Group 1 - The company has successfully achieved bulk sales of optical communication chips with speeds ranging from 155M to 100G [1] - The total shipment volume of these chips has exceeded 2 billion units [1] - The customer base includes major domestic and international telecom operators, system equipment manufacturers, and optical module vendors [1]

Core Viewpoint - Tianfu Communication is expected to maintain steady operational rhythm, with new momentum anticipated from major clients' 1.6T and CPO products, leading to a "Buy" rating [1] Financial Performance - In 2024, the company achieved revenue of 3.25 billion yuan, a year-on-year increase of 67.7%, and a net profit attributable to shareholders of 1.34 billion yuan, up 84.1% [2] - For Q4 2024, revenue was 860 million yuan, with quarter-on-quarter growth of 17.0% and year-on-year growth of 2.2%; net profit was 370 million yuan, with quarter-on-quarter growth of 26.2% and year-on-year growth of 13.9% [2] - In Q1 2025, revenue reached 950 million yuan, with quarter-on-quarter growth of 29.1% and year-on-year growth of 10.2%; net profit was 340 million yuan, with quarter-on-quarter growth of 21.1% but a year-on-year decline of 8.0% [2] Product Line Insights - In 2024, revenue from active products was 1.66 billion yuan (up 121.9% year-on-year) and from passive products was 1.58 billion yuan (up 33.2% year-on-year) [3] - The demand for passive components is expected to surge due to the AI data communication market, while telecom markets face pressure [3] - The company is focusing on high-speed data communication and silicon photonics products, with various high-specification components already in small-scale delivery [3] Production and Supply Chain - The company's factory in Thailand has commenced production, providing a unique advantage in the silicon photonics supply chain [4] - The first phase of the factory was delivered and operational last year, with the second phase progressing as planned [4] - The company is developing customized passive components and is expected to expand production following customer certification [4] Market Position and Future Outlook - The company is a key participant in NVIDIA's CPO supply chain, which is expected to contribute to new growth as the market expands [5] - NVIDIA's CPO switches are projected to significantly reduce energy consumption and improve network reliability [5] - The CPO market is forecasted to reach $5 billion by 2030, with major players like NVIDIA and Broadcom driving early adoption [5] Profit Forecast and Investment Recommendation - The company anticipates a significant rebound in active business growth in the second half of the year, with projected net profits of 2.08 billion yuan, 2.88 billion yuan, and 3.24 billion yuan for 2025-2027, respectively [6] - The current valuation is considered to be at a historical low, maintaining a "Buy-A" rating [6]

Core Viewpoint - The company reported strong financial performance for Q1 2025, with total revenue of 370 million yuan, a year-on-year increase of 66%, and a net profit attributable to shareholders of 79 million yuan, reflecting a year-on-year growth of 150% and a quarter-on-quarter growth of 147% [1]. Group 1: Financial Performance - The company achieved significant revenue and profit growth, benefiting from the increased demand for high-density connectivity products [2]. - The company has seen continuous growth in revenue, profit, and profit margins since Q3 of the previous year [2]. - The demand for high-density connectivity products is driven by factors such as the upgrade of optical module speeds, complex wiring, and the gradual commercialization of CPO technology [2]. Group 2: Strategic Partnerships and Product Development - The company is one of the largest manufacturers of optical dense connection products globally and maintains long-term supply relationships with major players like Corning [2]. - The company signed a patent licensing agreement with US Conec in April 2025, allowing it to mass-produce and sell MDC and MMC products, which are core components for high-speed optical modules and CPO [2]. - This partnership is expected to fill technological gaps in the connector field, enhance product compatibility with next-generation technology, and help the company seize opportunities in the CPO market [2]. Group 3: Expansion and Market Strategy - The company is accelerating capacity expansion to meet the rising demand for high-density connectivity products driven by AI [3]. - A new production base in Vietnam has been established to enhance delivery capabilities and mitigate tariff risks associated with overseas supply chains [3]. - The strategic layout aims to align with the US Conec patent authorization to better respond to uncertainties in tariffs and improve responsiveness to overseas customers [3]. Group 4: Future Projections - Revenue projections for the company from 2025 to 2027 are estimated at 2.3 billion, 3.9 billion, and 5.3 billion yuan, with net profits of 510 million, 960 million, and 1.38 billion yuan, respectively [3]. - Corresponding price-to-earnings ratios are expected to be 33, 18, and 12 times for the respective years [3]. - The company is well-positioned to benefit from the demand for high-density connectivity products driven by data center infrastructure development [3].

Core Insights - The article highlights the growth and challenges in the optical communication sector driven by digitalization, AI, 5G, and other emerging technologies [1] - Shenzhen Tefa Information Co., Ltd. reported a steady operating performance with a revenue of 4.41 billion yuan in 2024 and a net cash flow from operating activities of 373 million yuan, marking a 68.39% year-on-year increase [1] - The company is focusing on its "14th Five-Year Plan" strategy, emphasizing technological innovation and digital transformation [1] Group 1: Company Performance - In 2024, Tefa Information achieved an operating revenue of 4.41 billion yuan and a net cash flow from operating activities of 373 million yuan, reflecting a 68.39% increase year-on-year [1] - The first quarter of 2025 showed a seasonal decline in revenue and profit, consistent with the expected "low first, high later" pattern [1] Group 2: Strategic Initiatives - Tefa Information is implementing a "Red 'Core' Strong Chain, Innovative Strong Enterprise" brand, focusing on enhancing the supply chain and driving technological innovation through party leadership [2] - The company has initiated four major actions under this brand, including "Red 'Core' Engine" and "Red 'Core' Forging," aimed at converting political and organizational advantages into innovation momentum [2] Group 3: Collaborative Innovation - Tefa Information is building a collaborative innovation platform by partnering with universities, research institutions, and industry players to foster resource sharing and technological advancement in optical communication [3] Group 4: Technological Advancements - In 2024, Tefa Information assisted China Mobile in launching an 800G hollow-core fiber transmission technology trial network, achieving international standards in key technical indicators [4] - The company also successfully opened a 1.2T ultra-low loss hollow-core fiber transmission link, marking a significant milestone in the practical application of hollow-core fiber technology [4] Group 5: Ongoing Research and Development - Tefa Information is leading a national key research and development project focused on MEMS optical fiber sensors, addressing critical measurement technology needs in various major equipment sectors [6] - The company has received multiple awards for its innovative contributions, including recognition in the Guangdong-Hong Kong-Macao Greater Bay Area high-value patent cultivation competition [7]

1 、 《 光通信模块核心标的 》摘要 ■ 随着AI大模型爆发性增长（如GPT、Sora），数据中心对 高速光模块 （800G/1.6T）和相关光器件 需求激增。 ■ 中际旭创 800G产品已批量出货， 1.6T模块研发进度全球领先 ，预计2025年量产。 ■ 新易盛 400G及以下已规模化交付，800G小批量，1.6T样品发布。 3、 《 华为5G通信设备出海 》摘要 5、《 2024年全国发电设备行业十大科技创新 》摘要 ■ 作为中国首个 完全自主知识产权 的三代非能动压水堆技术，"国和一号"标志着中国在高端核电装备 领域打破技术封锁，反应堆压力容器、主泵、堆芯仪表等关键设备全面国产化，未来有望 批量化复 制 。 ■ 德国新政府取消"可信国家"限制 ，转而采用"可信技术标准"，核心逻辑从"政治标签"转向"技术标 准"，为华为扫清合规障碍。 ■ 华为在5G设备领域 技术先进+成本优势明显 ，替代厂商有限（如诺基亚、爱立信产能与性价比不 足）。 4 、 《 跨国巨头的数亿美元订单，被这家中国企业拿下了 》摘要 ■ 在净利率本就不高（3~5%）的背景下，供应链成本动辄占运营成本的四分之一以上，任何微小效 率的提 ...

Investment Rating - The report maintains a "Buy" rating for Zhongji InnoLight with a target price reduced to CNY 125, implying a 54% upside from the closing price of CNY 81.19 on April 21, 2025 [5][26]. Core Insights - The company experienced significant revenue and earnings growth in FY24, with year-on-year revenue growth of 122.6% and earnings growth of 142.6%. However, 1Q25 revenue growth was subdued at 37.8% year-on-year due to a shortage of EML chips, while earnings rose 56.8% year-on-year, driven by better gross profit margins [1][2][19]. - Demand for 800G transceivers is expected to remain strong, while demand for 1.6T transceivers may slow down this year but is anticipated to ramp up next year. The easing of the EML chip shortage is expected to improve shipment volumes in the coming quarters [2][19]. - The report highlights that a temporary tariff exemption is currently easing margin pressure and may boost near-term shipments, although the risk of a tariff hike remains a concern [3][19]. Financial Summary - FY24 revenue was reported at CNY 23,862 million, with a projected revenue of CNY 37,228 million for FY25 and CNY 41,462 million for FY26. The normalized net profit for FY24 was CNY 5,171 million, with projections of CNY 8,202 million for FY25 and CNY 9,373 million for FY26 [4][10]. - The gross profit margin (GPM) is expected to improve slightly, with FY25-26F GPM raised by 0.1 percentage points due to a better product mix [16][19]. - The company is currently trading at a normalized P/E of 9.7x for FY26F, which is below the median P/E range of the China electronic/communication component companies [1][4][19].