Core Insights - The company reported a revenue of 2.035 billion yuan for the first half of 2025, representing a year-on-year growth of 15.48% [1] - The net profit attributable to shareholders reached 121 million yuan, with a significant year-on-year increase of 51.12% [1] - The net profit after deducting non-recurring items was 119 million yuan, showing an impressive growth of 84.21% year-on-year [1] Investment Highlights - The strong profit performance in the first half of 2025 is primarily driven by the high-speed optical module and telecom broadband access businesses [2] - The high-speed optical module segment saw substantial growth due to strong market demand and optimized product structure, leading to a significant increase in sales gross margin [2] R&D Focus - The company is concentrating its R&D and production efforts on high-speed optical modules, specifically 400G, 800G, and 1.6T products [3] - In the first half of 2025, the company successfully launched mass production of 800G and 400G series products and completed the development of a full series of 800G optical modules based on silicon photonics technology [3] - The company has also completed the development of prototypes for the second generation of 1.6T DR8 and 2×FR4 optical modules, which were successfully demonstrated at the 2025 OFC [3] Production Capacity Expansion - The Jiaxing factory was completed and put into operation in the second half of 2025, with production equipment arriving and being utilized [4] - The company expects to achieve a full range of mass production capabilities exceeding one million units in the second half of the year [4] - The Shanghai and Jiaxing factories are focused on increasing the production capacity of 800G series products to an annualized rate of 2 million units, with simultaneous capacity upgrades in Malaysia and North America to meet the explosive demand for 800G optical modules in AI data centers [4] Earnings Forecast - The company forecasts revenues of 5.19 billion yuan, 7.90 billion yuan, and 11.44 billion yuan for 2025, 2026, and 2027 respectively, with EPS of 1.13 yuan, 2.52 yuan, and 4.13 yuan [5] - The current stock price corresponds to PE ratios of 56, 25, and 15 for the respective years [5] - The upward revision of profit forecasts is attributed to the expected increase in 800G production capacity and improved gross margins from the optimization of high-speed product ratios [5]