Core Viewpoint - The company Jinzi Ham (002515) plans to invest up to 300 million yuan in Zhongsheng Microelectronics (Hangzhou) Co., Ltd. through capital increase and expansion to seize opportunities in the AI and optical communication industries [1] Investment Details - The investment will occur in two rounds, aiming to acquire no more than 20% equity in Zhongsheng Microelectronics, with the first round based on a pre-investment valuation of 1 billion to 1.3 billion yuan [1] - The specific amount and shareholding ratio will be finalized after due diligence and negotiations [1] Company Background - Zhongsheng Microelectronics, established in 2019, focuses on the R&D and design of high-speed optical module core chips for applications in AI, cloud computing, and 5G/5.5G [1] - The company has a top-tier design team and has been listed in the "China Future Unicorn TOP100" for 2024 and 2025 [1] Strategic Rationale - The investment aims to broaden investment channels and align with the trends of the digital economy, providing new opportunities for the company's future business growth [1] - The company's main business has been slow due to consumer market factors, and this cross-industry investment is expected to boost performance and achieve sustainable development in the medium to long term [1] Financial Considerations - Zhongsheng Microelectronics has not yet turned a profit, reporting a loss of 20.37 million yuan in the first seven months of the year, indicating uncertainty in future profitability [2] - The first round of investment is based on a pre-investment valuation of 1 billion yuan, which could imply a significant appreciation rate of 9710% by the end of 2024 if calculated from the lower end of the valuation range [2] - The company has acknowledged past unsuccessful investments, highlighting the risks associated with this cross-industry investment [2]

Group 1 - The fifth China Quality Award was awarded to Jiangsu Hengtong Optic-Electric Co., marking a significant milestone for Wujiang in promoting quality-driven industrial development [1] - Wujiang has established a "pyramid" quality brand matrix, with one company winning the China Quality Award, seven receiving provincial quality awards, and fourteen obtaining municipal quality awards [4] - Hengtong Optic-Electric is the only company in China covering the entire industry chain from cable manufacturing to deep-sea operation, maintaining a leading market share in marine communication [2][4] Group 2 - Wujiang's enterprises have integrated quality into their development, with a focus on digital transformation to enhance quality management across various industries [5][7] - The district has implemented a "three-step" strategy to promote digital quality management, aiming to cover the entire industry lifecycle [7][8] - Wujiang has achieved significant improvements in quality management, with a consumer quality pass rate exceeding 97% and a record of zero accidents in food safety for four consecutive years [10][11] Group 3 - The local government has initiated multiple national and provincial quality innovation pilot projects, including quality enhancement in the optical communication industry and digital quality management demonstrations [11] - Wujiang's quality improvement strategies are deeply embedded in urban development, influencing various aspects of daily life, from food safety to healthcare services [9][10] - The region's commitment to quality is reflected in its comprehensive regulatory framework and collaborative efforts across multiple departments to ensure safety and quality standards [10]

Core Viewpoint - The announcement by Huigreen Ecological Technology Group regarding the lease agreement for a photonic industry park reflects a broader trend of capacity expansion in the optical module industry, driven by surging AI computing demands [1] Industry Expansion - The optical module industry is experiencing a wave of capacity expansion, with major companies focusing on technological upgrades and production capacity to seize market opportunities [2][3] - Huigreen Ecological has signed contracts to build production bases for 450 million optical modules with a total investment of 700 million yuan, indicating significant growth in production scale and technology [2] - Other companies like Shanghai Cambridge Technology and Zhongji Xuchuang are also ramping up production of high-end products, including 1.6T and 800G optical modules, to meet rising demand [2] Market Demand and Growth - The demand for 400G and 800G optical modules remains strong, with the 1.6T optical module expected to become a key growth driver by 2025 [2] - The global optical module market is projected to grow from $11.2 billion in 2020 to $17.8 billion in 2024, with a compound annual growth rate of 12.2% [3] - In China, the optical module market is expected to reach approximately 70 billion yuan by 2025, reflecting a growth of 12.22% from the previous year [3] Performance Metrics - Leading domestic optical module companies have reported significant sales growth, with Xinyi Sheng's sales volume reaching 6.95 million units in the first half of 2025, a year-on-year increase of 112.5% [4] - Huagong Technology reported a revenue of 3.744 billion yuan from its connectivity business in the first half of 2025, a 124% increase year-on-year, with expectations of substantial growth in AI-related optical module shipments [4] Supporting Factors - The growth in the optical module industry is supported by a surge in AI computing infrastructure both domestically and internationally, with major tech companies increasing their procurement of high-speed optical modules [5] - Policy support from the Chinese government, including guidelines for enhancing data infrastructure, is expected to further stimulate the optical module market [5] - The long-term opportunities in the optical module industry are driven by the continuous iteration of AI technology, expanding demand, and supportive policies [5]

Group 1 - Google has made advancements in Optical Circuit Switching (OCS) technology, actively testing a piezoelectric ceramic (DLBS) OCS solution to optimize its AI supercomputing cluster's network performance [1] - The piezoelectric ceramic technology offers advantages such as direct optical transmission with no reflection loss and switching delays as low as milliseconds, making it a significant technology route following MEMS and Digital Liquid Crystal (DLC) [1] - The piezoelectric ceramic OCS is noted for its low system loss and fast switching speed, particularly suitable for high-stability AI cluster interconnection scenarios, with benefits including low energy consumption, no electromagnetic noise, and long lifespan [1] Group 2 - Google's TPUv4/v7 clusters have adopted OCS to construct a 3D ring network, and if the piezoelectric ceramic solution matures, it is expected to further reduce power consumption and enhance network efficiency for large-scale GPU/TPU interconnections [1] - The expected procurement volume of OCS by Google is projected to double to 20,000 units by 2025, with the piezoelectric ceramic solution anticipated to support larger-scale GPU/TPU interconnections, providing efficient optical interconnect support for exascale computing clusters [1] - The establishment of the OCP Alliance is accelerating the standardization process of OCS technology, positioning piezoelectric ceramics as a key option for the next generation of data center optical switching [1] Group 3 - Lingyun Optics, a domestic optical communication and high-end optical device company, is collaborating with the leading global manufacturer of piezoelectric ceramic OCS technology, Polatis, to jointly promote direct beam deflection piezoelectric ceramic OCS products [1] - Dekoli has received overseas sample orders for its silicon-based OCS products, establishing itself as one of the representative manufacturers in China with OCS system R&D and delivery capabilities, benefiting from the expansion of the DLBS solution industry [2]

Group 1 - The core viewpoint of the article is that Jinzi Ham (002515) is optimistic about the AI industry and optical communication market, planning to invest up to 300 million yuan to acquire up to 20% equity in Zhongsheng Microelectronics (Hangzhou) Co., Ltd. through a capital increase [1] - The investment will be conducted in two rounds, with the first round amounting to 100 million yuan, and Zhongsheng Microelectronics' pre-investment valuation is estimated to be between 1 billion yuan and 1.3 billion yuan [1] - Zhongsheng Microelectronics, established in 2019, focuses on the research and design of core chips for high-speed optical modules, specifically for 400G, 800G, and 1.6T and above [1]

Group 1: Financial Sector Developments - The State Council held a press conference on September 22, 2025, focusing on the development of the financial sector during the 14th Five-Year Plan, emphasizing a mid-to-long-term perspective without discussing short-term policy adjustments [2] - The total assets of the banking and insurance sectors have exceeded 500 trillion yuan, with an average growth of nearly 9% over the past five years, solidifying China's position as the largest credit market and the second-largest insurance market globally [2] - The A-share market has shown enhanced resilience and risk resistance, with the Shanghai Composite Index's annualized volatility decreasing by 2.8 percentage points to 15.9% compared to the previous five-year period [2] Group 2: Capital Market Reforms - The China Securities Regulatory Commission (CSRC) announced plans to deepen capital market reforms, focusing on enhancing the service for new productive forces and improving the systems for the Sci-Tech Innovation Board and the Growth Enterprise Market [3] - The Shanghai Stock Exchange aims to promote long-term capital inflow into the market and enhance regulatory measures to support high-quality development [4] - The Shenzhen Stock Exchange is set to deepen comprehensive reforms in capital markets, particularly focusing on the Growth Enterprise Market to support the listing of quality tech innovation companies [5] Group 3: Energy and Industrial Developments - The National Energy Administration outlined goals for the energy equipment sector, aiming for a self-controlled, high-end, intelligent, and green development by 2030, with a focus on enhancing global competitiveness [6] - The Ministry of Industry and Information Technology has set a target for the steel industry to achieve an average annual growth of around 4% in value added over the next two years, emphasizing structural adjustments and capacity control [6] Group 4: Company News Highlights - He Yuan Bio has initiated its issuance, becoming the first new issuer in the Sci-Tech Innovation Growth sector [10] - Tianpu Co. has experienced a 14 consecutive trading limit increase, with no asset injection plans from the acquirer Zhonghao Xinying [10] - Longchuan Technology expects a year-on-year net profit increase of 131.39% to 145.38% for the first three quarters [11]

Group 1 - The company has deepened its precision manufacturing capabilities over the years, initially focusing on Foxconn and later acquiring Chunsheng Electronics, which has allowed it to serve key clients like Sony and Meta in the gaming console manufacturing sector [1] - The gaming console sales are cyclical, and the company's core clients have recently launched new products that are selling well, indicating that the company, as an upstream supplier, is expected to continue benefiting from ongoing new material introductions [1] - The optical communication business has experienced rapid growth since the company entered the fiber connector market in 2019 and became a qualified supplier for SENKO in 2020, now representing a significant growth driver for the company's performance [1] Group 2 - The company plans to acquire Shenzhen Hengyang Data Co., Ltd. through a combination of share issuance and cash payment, which focuses on intelligent computing and data processing solutions [2] - If the acquisition is completed, it will enhance the company's profitability and diversify its business structure, transitioning from a "data transmission" provider to a "light + computing" solution provider, thus meeting broader customer needs [2] Group 3 - Assuming the acquisition of Hengyang Data is completed by 2026, the company forecasts revenues of 1.012 billion, 1.813 billion, and 2.201 billion yuan for 2025-2027, with year-on-year growth rates of +3.84%, +79.20%, and +21.42% respectively [3] - The projected net profits for the same period are 223 million, 204 million, and 248 million yuan, with year-on-year changes of +230.75%, -8.27%, and +21.63% respectively [3] - The earnings per share (EPS) are expected to be 1.73, 1.59, and 1.93 yuan for 2025-2027, with the closing price on September 22, 2025, at 96.97 yuan, resulting in corresponding price-to-earnings (PE) ratios of 56.08x, 61.13x, and 50.28x [3]

IPO Pipeline Overview - As of September 21, there are 279 companies in the IPO pipeline, with 21 on the Shanghai Main Board, 36 on the Sci-Tech Innovation Board, 25 on the Shenzhen Main Board, 27 on the Growth Enterprise Market, and 170 on the Beijing Stock Exchange [1][2]. Newly Listed Companies - Hebei Shichang Automotive Parts Co., Ltd. was listed between September 15 and September 21, closing at 40.50 yuan per share, representing a 271.56% increase, with a trading volume of 641 million yuan and a turnover rate of 87.48% [3]. New Counseling Records - Eight new companies were added to the counseling records from September 15 to September 21, including Beijing Weina Star Technology Co., Ltd. and others, focusing on various sectors such as satellite technology, quantum computing, and environmental equipment [4][5]. Companies Undergoing Review - Yuan Chuang Technology Co., Ltd. and Suzhou New Guangyi Electronics Co., Ltd. successfully passed the review process, while Xiamen Youxun Chip Co., Ltd. had its review results postponed [8][9]. Registration Approval - Three companies received registration approval from September 15 to September 21, including Zhongcheng Zhixin Engineering Consulting Group Co., Ltd., which provides comprehensive consulting services, and Nabaichuan New Energy Co., Ltd., focusing on thermal management for electric vehicle batteries [10]. Terminated Reviews - Four companies, including Hengyang Jinzelite Special Alloy Co., Ltd. and others, withdrew their IPO applications during the same period [11][12][13].

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4][6]. Core Views - The company has deepened its focus on precision manufacturing and has established a key position in the gaming console manufacturing sector by closely serving major clients like Sony and Meta. The sales of gaming consoles are cyclical, but with new products launched by core clients, the company is expected to benefit continuously as new materials are introduced [1]. - The optical communication business has seen rapid growth since the company entered the fiber connector market in 2019, becoming a qualified supplier for SENKO in 2020. This segment is anticipated to experience a surge in demand due to the acceleration of global computing infrastructure [2]. - The company plans to acquire Hengyang Data, which specializes in intelligent computing and data processing solutions. This acquisition aims to transition the company from a component supplier to a "light + computing" solution provider, thereby expanding its customer base [3]. Summary by Sections 1. Company Overview - The company has been deeply involved in precision manufacturing since its establishment in 2009 and has expanded its business into the optical communication and automation equipment sectors. It has established a solid foundation by collaborating with major clients like Foxconn and has diversified its product offerings [14][24]. 2. Gaming Console Components - The gaming console market is stable, with the Nintendo Switch2 experiencing strong sales. The company has been providing various precision components for major clients, including N Company and Sony, and is well-positioned to benefit from the sales of new generation gaming consoles [38][50][55]. 3. Optical Fiber Connectors - The company has developed a comprehensive range of optical fiber connector products and has established a strong partnership with SENKO. The demand for these products is expected to rise significantly due to the ongoing expansion of computing clusters and advancements in new technologies [63][79]. 4. Financial Forecast and Valuation - The company is projected to achieve revenues of 1.012 billion, 1.813 billion, and 2.201 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 3.84%, 79.20%, and 21.42%. The net profit attributable to shareholders is expected to be 223 million, 204 million, and 248 million yuan for the same years [4][9].

IPO Review and Registration Progress - Three companies were reviewed last week, with two IPO registrations approved and one company facing a delay in review [2][3] - Yuan Chuang Co., Ltd. and Xin Guang Yi both received approval for their IPOs, targeting the Shenzhen Main Board and the ChiNext Board respectively [2] - Yuan Chuang's main business involves the research, production, and sales of rubber tracks, with projected revenue of 1.349 billion yuan in 2024, an 18.19% increase year-on-year, but a 12.94% decline in net profit [2] - Xin Guang Yi focuses on high-performance special functional materials, with its performance closely tied to the FPC industry and consumer electronics [3] Upcoming IPOs - Four companies are scheduled for IPO reviews this week, including Bai Ao Sai Tu, Heng Dong Guang, Nan Wang Digital, and Mo Er Thread [4][5] - Bai Ao Sai Tu, a clinical pre-CRO and biotechnology firm, aims to raise 8 billion yuan, with projected revenues increasing from 534 million yuan in 2022 to 980 million yuan in 2024 [5] - Heng Dong Guang specializes in passive optical devices, reporting a 105.84% revenue increase to 1.021 billion yuan in the first half of 2025 [5] - Mo Er Thread, a GPU chip design company, plans to raise 8 billion yuan for various chip development projects, with a revenue of 702 million yuan in the first half of 2025 [6] New Stock Listings and Subscription Dynamics - One new stock, Shi Chang Co., Ltd., was listed last week, with a first-day increase of 271.56% [9] - Shi Chang specializes in automotive fuel systems, with a focus on lightweight and low-emission products, targeting major automotive manufacturers [10] - This week, You Sheng Co., Ltd. is set to be listed, focusing on lightweight components for new energy vehicles, reporting a 30.76% revenue growth in the first half of 2025 [11] - One new stock subscription is scheduled for Ao Mei Sen, with an issue price of 8.25 yuan per share, focusing on intelligent equipment manufacturing [12] New Applications and Approvals - Three new IPO applications were accepted last week at the Beijing Stock Exchange, including Jiu Mu Chemical, Bai Nuo Pharmaceutical, and Shen Lan Hua [7] - Jiu Mu Chemical, a subsidiary of Wanrun Co., focuses on OLED materials, reporting a revenue decline of 23.1% in the first half of 2025 [7] - Bai Nuo Pharmaceutical aims to raise 800 million yuan for drug development and digital platform projects, with a revenue of 287 million yuan in the first half of 2025 [8] - Shen Lan Hua, specializing in high-end organic pigments, reported a 25.04% revenue increase to 388 million yuan in the first half of 2025 [8]