Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company focuses on the research and manufacturing of optical components and modules, with stable revenue growth projected to reach 420 million yuan in 2024, a year-on-year increase of 14%, and a compound annual growth rate (CAGR) of 13% from 2019 to 2024 [2]. - The company is expected to benefit from the increasing demand for precision optical components in the semiconductor and general semiconductor manufacturing sectors, with a reported revenue of 51.09 million yuan in 2024, a year-on-year increase of 82.3% [2]. - The company has also begun supplying optical products for AR/VR applications, generating approximately 5.5 million yuan in revenue in 2024 [2]. Summary by Sections Company Overview - The company operates in the midstream of the optical industry, producing optical components that cover a wavelength range from ultraviolet to far infrared [14]. Downstream Applications - The demand for precision optics is driven by various emerging fields, including semiconductors, smart manufacturing, infrared security, and consumer-level optical products like AR/VR [25]. Revenue Growth and Business Expansion - The company achieved a revenue of 99 million yuan in Q1 2025, reflecting a year-on-year growth of 20.9% [33]. - The company's overseas business revenue reached 130 million yuan in 2024, a year-on-year increase of 35%, accounting for 31% of total revenue [3]. Profit Forecast and Valuation - The company is projected to achieve revenues of 510 million yuan, 640 million yuan, and 800 million yuan in 2025, 2026, and 2027, respectively, with corresponding net profits of 50 million yuan, 70 million yuan, and 90 million yuan [4]. - The report assigns a target price of 100.08 yuan per share based on a 2026 price-to-sales (P/S) ratio of 18x [4].

Company Overview - Juguang Technology (688167) has repurchased a total of 503,800 shares, accounting for 0.56% of the total share capital, with a total repurchase amount of 35.19 million yuan as of May 31, 2025 [1] - The company has implemented four share repurchase plans since its listing, with a cumulative repurchase amount of 216 million yuan and cash dividends of 65.87 million yuan, reflecting its commitment to shareholder value [1] - The chairman and general manager, Liu Xingsheng, expressed confidence in the company's future and a strong willingness to increase personal holdings when supportive policies arise [1] Strategic Layout - Juguang Technology has established a comprehensive competitive advantage in the industry chain, focusing on photon technology applications and manufacturing services, particularly in optical communication, consumer electronics, and semiconductor processes [2] - The company’s R&D investment reached 95 million yuan in 2024, the highest since its listing, and it holds 594 authorized patents, including 263 overseas invention patents [2] Product Development - The company has made significant progress in various product areas, including advanced packaging materials for high-power semiconductor lasers and optical technologies for laser communication applications [3] - In the consumer electronics sector, Juguang Technology is developing high-end optical core components and micro-imaging modules for applications in visible light, infrared lighting, AR, VR, and 3D perception [3] - The company has also expanded its offerings in the automotive sector with laser radar solutions and is advancing its medical health product line with new laser skin treatment modules [3] Industry Outlook - The global optical communication market is projected to reach 30.7 billion USD by 2025, with growth rates significantly exceeding those of the overall photonics component market [4] - The integration of AI and AR/VR technologies is driving advancements in the consumer electronics industry, positioning Juguang Technology's optical sensing technologies as essential components in next-generation smart devices [4] - The semiconductor industry is experiencing growth due to increased domestic investment and policy support, presenting a favorable development period for domestic manufacturers [4]