Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance in the near term [3][55]. Core Insights - The company is positioned as a rare comprehensive provider of optical interconnection solutions, benefiting significantly from its long-term stable partnership with Google in the MPO field and its strategic layout in active products like optical modules and AOC [3][55]. - The company's revenue is expected to grow rapidly, with projected revenues of 34.52 billion, 69.92 billion, and 120.22 billion yuan for the years 2025, 2026, and 2027 respectively, alongside net profits of 3.72 billion, 10.94 billion, and 19.05 billion yuan for the same years [3][55]. Summary by Sections Company Overview - The company started with PLC optical splitters and has gradually built a complete optical interconnection system solution, targeting telecommunications, data centers, and industrial interconnection fields [13]. - Its product range includes PLC optical splitters, PON optical transceivers, DWDM, AWG, VMUX for telecommunications, and AOC and copper cable products for data centers, covering speeds from 10G to 800G [13]. Market Opportunities - Google is a key beneficiary of the company's offerings, with a strong emphasis on AI commercialization and the urgent need for capacity expansion, aiming to double its computing power every six months [2][37]. - The company has established a long-term stable supply relationship with Google in the MPO field, which is crucial for high-density optical connections [2][43]. Financial Performance - The company reported a revenue of 1.675 billion yuan in 2023, with a projected increase to 3.452 billion yuan in 2025, reflecting a year-on-year growth of 97.54% [6][55]. - The net profit for 2023 was 81 million yuan, expected to rise to 372 million yuan in 2025, indicating a significant growth trajectory [6][55]. - The overall gross margin improved to 40.19% in the first three quarters of 2025, driven by the growth in data communication and industrial interconnection markets [27]. Future Outlook - The company is expected to become a core beneficiary of Google's computing power expansion, with its data communication business projected to achieve rapid growth [3][55]. - The report highlights the potential for significant market opportunities in the AOC and MPO sectors, with the company already making strides in silicon photonics technology [2][49].

Core Viewpoint - The article discusses the different types of cables used in data centers, particularly focusing on Active Optical Cables (AOC) and their advantages over traditional copper cables, as well as the specific cable choices made in the GB200 architecture. Group 1: Active Optical Cables (AOC) - AOC is defined as a cable technology that uses optical fibers between connectors while maintaining compatibility with standard electrical interfaces, enhancing speed and transmission distance [2][10] - AOC components consist of four functional parts, including high-density connectors and embedded optical transceivers for optical-electrical and electrical-optical conversion [4][5] - AOC offers various types, such as 10G SFP AOC, 25G SFP28 AOC, and 100G QSFP28 AOC, catering to different data rates [8] - The advantages of AOC include longer transmission distances, higher bandwidth, lower electromagnetic interference, and reduced size and weight compared to copper cables [11][12] Group 2: Copper Cables - Direct-Attached Cables (DAC) are copper cables designed for direct connections between devices, available in both passive and active types [17] - Passive DACs are cost-effective and consume little power, making them suitable for short-distance connections, but have limited transmission distances [20][21] - The drawbacks of passive copper cables include limited transmission distance (typically under 7 meters), bulkiness, and sensitivity to electromagnetic interference [21][24] Group 3: GB200 Architecture - In the NVL72 interconnect scheme, NVIDIA opted for 5,184 copper cables instead of optical ones, which are more cost-effective and reliable [36] - Each GPU in the NVL72 has a unidirectional bandwidth of 900GB/s, requiring 72 differential pairs for bidirectional transmission, leading to the total of 5,184 cables [36] - The GB200 architecture utilizes optical connections for GPU-GPU inter-rack communication due to the distance limitations of copper cables, while copper cables are used for cost savings in certain deployments [38]