Summary of Key Points from the Conference Call Industry Overview - The optical module industry is experiencing high growth, with saturation expected in demand from the second half of 2025 to 2026, driven by the introduction of 1.6T solutions, primarily benefiting from the mass import of NVIDIA's C8X network card and potentially the CX9 network card initiating 3.2T demand [2][5][20] - The iteration cycle for optical modules has shortened to approximately two years, favoring leading manufacturers [2][5] Core Insights and Arguments - Domestic second-tier optical module manufacturers such as Solstice, Cambridge, and Lantech are seizing the high demand for AI optical modules to penetrate the North American market, despite the limited opportunities due to established suppliers [2][6] - Domestic optical chip manufacturers are accelerating technological advancements, with significant progress reported by Yuanjie in CW laser technology and Changguang Huaxin in 100G EML, enhancing market competitiveness [2][7][8] - The CPC (Copax) and pluggable optical module solution proposed by Xuchuang is gaining traction, having been adopted by overseas companies like Broadcom and Marvell, marking it as a significant competitor in the short term [2][13] Emerging Technologies - Liquid cooling products were prominently showcased at the 2025 data center exhibition, indicating readiness for NVIDIA's opportunities, with high demand noted [3] - OCS (Optical Circuit Switching) technology is gaining attention, with Google pushing its development and domestic manufacturers like Guangku and Lingyun Light showcasing related products [12] - NPU (Near-Package Unit) technology is emerging as a promising alternative to CPU, with expectations for earlier market adoption and significant demand for switches [11] Market Dynamics - The optical module industry is expected to see less price decline in 2026 due to strong demand and tight supply conditions, with shortages in core materials like EMA and CW light sources contributing to price stability [4][20] - The North American market's demand for 800G and 1.6T is creating opportunities for domestic manufacturers, despite the competitive landscape [6] Notable Developments - Changfei Fiber showcased an AI intelligent hub solution and hollow fiber products, achieving a significant milestone with a 100-kilometer hollow fiber link demonstrating a loss of 0.089dB per kilometer, nearing the limits of quartz fiber [4][18][19] - The rapid development of supernodes in China is being driven by major players like Huawei and ZTE, indicating a robust growth trend in the industry [14] Conclusion - The optical module industry is poised for significant changes driven by technological advancements and market dynamics, with new solutions like CPC and hollow fiber technology potentially reshaping competitive landscapes and driving growth [21]

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the optical communication industry, particularly highlighting the advancements in silicon photonics technology and its implications for the market [1][2][3]. Core Insights and Arguments - Leading companies in the optical module sector, such as Zhongji Xuchuang and Xinyi Sheng, are expected to gain significant competitive advantages in the silicon photonics era, with market share likely to increase [1][2][3]. - New technologies like OCS, hollow fiber, and lithium niobate CPO are developing concurrently but are not expected to completely replace pluggable optical modules. The commercial viability, cost, and integration with existing network architectures are critical factors to consider [1][4]. - The growth in overseas computing power demand is driving the need for related equipment such as optical modules, PCD, and switches, reinforcing the first-mover advantage of leading firms and enhancing industry confidence in market valuations [1][5]. - The application range of silicon photonics technology is expanding, with significant opportunities in the industry chain, such as CW lasers. The commercial development of CPO technology is currently in its early stages and relies heavily on industry collaboration [1][6]. Notable Developments and Exhibitions - At the conference, 800G and 1.6T high-speed optical modules emerged as mainstream products, with multiple companies showcasing their advancements in this area. Zhongji Xuchuang and Xinyi Sheng presented a range of products from 400G to 1.6T [1][7][8]. - Huagong Technology's subsidiary Huagong Zhengyuan introduced second-generation technologies, including a 1.6T and 3.2T CPU optical engine featuring low power consumption [3][8]. - Cambridge Technology demonstrated its self-developed CW laser and showcased large-scale production of 800G, 400G, 200G, and 100G optical modules, along with small-batch production of 1.6T products [9]. Emerging Technologies - The demand for CW lasers is increasing, and solutions based on single-wave 200G technology are continuously being introduced. The advancements in thin-film lithium niobate chips and OCS CPU technologies are also noteworthy [12][13]. - Longfly Company showcased a 100-kilometer hollow fiber link with a low attenuation of 0.089 dB/km, indicating significant progress in high-speed interconnect cabling [15]. Investment Recommendations - Looking ahead to 2025, it is advised to focus on the IBC computing power industry chain, which includes network equipment, chips, CPO copper cables, and optical fibers. Additionally, attention should be given to AIDC data center construction and domestic IT equipment [19].

Group 1 - The report highlights the recent fluctuations in major asset classes, attributing them to weaker-than-expected US data and rising expectations for interest rate cuts by the Federal Reserve, which has led to strong performance in precious metals [1][28] - Domestic commodities have been in a state of adjustment due to the observation period of anti-involution policies, with correlations between domestic commodities and bond yields as well as stock indices dropping to historical lows, although recent stabilization has been noted [1][28] - The report suggests that the stock and bond markets continue to exhibit a seesaw effect, with certain A-share indices reaching new highs while bond yields also hit new highs, indicating a complex interplay between credit cycles and policy implementation [1][28] Group 2 - The report indicates a decline in social financing, with August's social financing scale increasing by 2.57 trillion yuan, which is 463 billion yuan less than the same period last year, highlighting a contraction in government bonds and a decrease in new loans [3] - The report emphasizes the need to solidify the foundations of the bull market, noting that various leading indicators have shown improvement, although import and export figures fell short of expectations [3][29] - The report recommends focusing on sectors that are likely to benefit from policy-driven growth, particularly in technology and new energy, while also suggesting a balanced approach to industry allocation [4][30] Group 3 - The report discusses the performance of specific companies, such as Source Technology, which reported a 71% increase in revenue and a 330% increase in net profit for the first half of 2025, driven by strong sales of data communication optical chips [11] - The report also highlights the performance of Minxin Technology, which achieved a historical high in revenue and turned a profit, with significant growth in its pressure sensor product line [18] - The report notes that the beverage company Xiangpiaopiao's revenue from its ready-to-drink segment has become its core income source, while the instant segment has faced challenges [23]

Core Viewpoint - Huagong Technology is significantly enhancing its performance in the optical communication sector, showcasing its advanced products at the 26th China International Optoelectronic Expo, which reflects the strength of domestic optical communication technology [1][2]. Financial Performance - In the first half of 2025, Huagong Technology achieved revenue of 7.629 billion yuan, a year-on-year increase of 45%, and a net profit attributable to shareholders of 911 million yuan, also up 45% [1][6]. - The connection business, primarily driven by Huagong Zhengyuan's optical module products, saw revenue growth of 124%, reaching 3.744 billion yuan, accounting for 49% of the total revenue [1][2]. Product Development - Huagong Zhengyuan launched the second-generation single-wave 400G optical engine and the 3.2T CPO optical engine, marking significant advancements in silicon photonics technology [2]. - The company has developed a full range of silicon photonics products, including 100G, 200G, 400G, and 800G, with expectations for rapid penetration of silicon photonics modules in the 800G and 1.6T markets [2]. Market Expansion - The overseas market for Huagong Technology's connection business is progressing well, with a 50% increase in orders in the first half of the year, and expectations for even greater growth in the second half [3]. - The company’s production capacity is set to increase, with its Thailand factory expected to reach a monthly capacity of 150,000 to 200,000 units by the end of the year [3]. Infrastructure Development - The first phase of Huagong Technology's optoelectronic information industry innovation park has been put into operation, with an expected annual output of over 40 million optical modules and a projected output value exceeding 30 billion yuan [3][4]. - The park is part of a larger investment exceeding 5 billion yuan, aimed at enhancing R&D and production capabilities for high-speed optical modules [4]. Business Segments - The three core business segments driving performance are: - Optical connection business, which focuses on high-end upgrades and AI application opportunities, achieving significant revenue growth [7]. - Perception business, which is expanding its sensor applications in the automotive and renewable energy sectors, with a revenue increase of 17% [7]. - "Laser + Intelligent Manufacturing" business, which is capitalizing on the growth in the new energy and intelligent manufacturing sectors, with notable revenue increases in key industries [8].

格隆汇9月14日丨中际旭创(300308.SZ)在投资者互动平台表示，可插拔光模块仍具有很强的迭代能力和 生命力，预计能按照3.2T、6.4T和12.8T的Roadmap进行技术迭代。此外，可插拔光模块拥有维护方便、 使用成本低、故障率低等优势，可以在高速光网络场景使用，仍受到行业客户的广泛重视和青睐。 ...

Group 1 - The A-share market experienced a week of weak consolidation around the 20-day moving average, with concerns about a potential drop to 3700 points if the support level failed [1] - On Thursday, the market unexpectedly broke upward, with major indices closing with significant gains, shifting market sentiment from cautious to positive, supported by a return of trading volume above 2 trillion [1] - The surge in the market was primarily driven by the CPO sector, where major companies received significant upward rating adjustments from overseas investment banks, igniting bullish sentiment [2] Group 2 - The performance of the brokerage sector is crucial for the market's continued upward momentum, as evidenced by a 3% rebound in the securities index on Thursday [2] - However, the securities index showed a notable decline of nearly 1.5% on Friday, indicating potential weakness and raising concerns about the sustainability of the previous day's gains [2] - The market's current position suggests that bullish momentum is waning, and a pullback to the 3600-3700 point range could create a more favorable environment for future upward movement [4]

每经AI快讯，有投资者在投资者互动平台提问：公司在未来技术布局中，除了光模块业务，还涉及哪 些与AI相关的新兴领域？这些领域的布局对公司的整体发展战略有何重要意义？ （记者 曾健辉） 中际旭创（300308.SZ）9月14日在投资者互动平台表示，公司还布局了AEC产品和液冷相关产品。 ...

Core Viewpoint - The company is currently in an active research and development phase for its 3.2T product, with market demand being a key factor for mass production timing [2] Group 1 - The company has the capability to develop 3.2T products and is focusing on technological reserves and market preparations [2] - The timing for the mass production of the 3.2T product is contingent upon customer demand [2]

Investment Rating - The report maintains a "Buy" rating for key companies in the optical module industry, specifically recommending Zhongji Xuchuang and Xinyi Sheng [4][10]. Core Insights - The optical module industry is experiencing unprecedented growth driven by the explosive demand for AI computing power, with a shift in focus from "where is the demand" to "how to deliver on time" [1][21]. - The core challenges for optical module manufacturers include capacity expansion, yield rates, and certification processes, which are critical for fulfilling orders [3][26]. - The report emphasizes the importance of delivery capability as a decisive factor in competition, highlighting leading companies like Zhongji Xuchuang and Xinyi Sheng for their technological innovation and rapid mass production capabilities [7][26]. Summary by Sections Investment Strategy - The report suggests focusing on the delivery capabilities of optical module manufacturers as the industry transitions into a phase driven by AI computing needs [1][21]. - Key companies to watch include Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication, among others in the optical communication sector [8][14]. Market Trends - The global AI server market is projected to reach $125.1 billion in 2024, with expectations to grow to $222.7 billion by 2028, indicating a significant increase in demand for optical modules [5][25]. - The demand for 800G optical modules is expected to reach approximately 7.5 million units in 2024 and 18 million units in 2025, with a supply gap predicted to be 40% to 60% by 2027 [5][25]. Production Challenges - The production of optical modules involves complex processes such as optical coupling, packaging, and reliability testing, which contribute to long lead times from order to delivery [3][23]. - The report identifies three main challenges: capacity expansion, yield improvement, and customer certification, which are critical for meeting the growing demand [11][24]. Recommendations - The report continues to favor the computing power sector and recommends investing in leading optical module companies while also considering smaller firms in the optical device space [7][26]. - It highlights the importance of domestic supply chains in the computing power industry, particularly in areas like liquid cooling [7][26].

Core Viewpoint - The 26th China International Optoelectronic Expo highlights the growing importance of optical modules driven by AI computing power, with significant participation from various companies in the optical communication sector [1][6][18]. Group 1: Industry Trends - The expo showcased a variety of optical/electrical chips, optical devices, optical modules, and fiber/cables, indicating a strong market interest in optical modules as a key component in AI infrastructure [1][6]. - The industry is witnessing a shift towards 800G and 1.6T optical modules, with expectations that 800G will dominate the market in the near term, while 1.6T products are beginning to see production and deployment [11][12][20]. - Companies are increasingly focusing on overseas markets, particularly the U.S., due to higher demand and better pricing compared to the domestic market, which is characterized by intense competition and price wars [12][13][14]. Group 2: Company Participation - Numerous listed companies participated in the expo, including NewEase, Guangxun Technology, and others, showcasing their latest products and innovations in optical communication [2][4]. - EnDatong, a key supplier for Oracle, attracted significant attention at the expo, highlighting its role in the optical module supply chain [1][12]. Group 3: Market Dynamics - The optical communication industry is closely monitoring the evolution of AI infrastructure, with discussions around Scale-out and Scale-up architectures for AI computing clusters [15][16]. - The demand for optical modules is expected to rise significantly, with projections indicating that the average number of 800G optical modules required per GPU will double by 2026 [20]. - Concerns about potential AI bubbles exist, with industry professionals advocating for a more cautious approach to expansion and production in light of the current market dynamics [17][22].