Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 114.85 RMB [8][5]. Core Insights - The company's revenue for 2024 reached 1.378 billion RMB, a year-on-year increase of 56%, while the net profit attributable to shareholders was 261 million RMB, exceeding expectations and growing by 68% [1]. - The fourth quarter of 2024 saw a significant revenue increase of 77% year-on-year, totaling 462 million RMB, with net profit soaring by 130% to 115 million RMB, driven by improved market conditions and enhanced gross margins [1][3]. - The gross margin for 2024 was reported at 36%, up 6 percentage points year-on-year, with a further increase to 39% in Q4 2024, attributed to optimized revenue structure and cost reductions from self-developed products [3]. Revenue Breakdown - The optical device segment generated 1.321 billion RMB in revenue for 2024, marking a 59% increase, while the optical sensing business saw a decline of 10% to 4 million RMB [2]. - Domestic revenue reached 298 million RMB, a 41% increase, while international revenue was 1.08 billion RMB, growing by 60% [2]. Future Outlook - Demand in 2025 is expected to remain strong, particularly in the MPO business, supported by the growing AI computing power needs [4]. - The company is poised to benefit from the CPO industry trend, with promising applications for its products in future solutions [4]. Financial Projections - The report projects net profit for 2025 and 2026 to increase by 8% and 12% respectively, with net profits expected to reach 450 million RMB and 646 million RMB [5]. - The company’s PE ratio for 2025 is set at 58x, reflecting its leading position in the MPO industry [5].