Core Viewpoint - The company reported strong financial performance for 2024, with significant year-on-year growth in revenue and net profit, and a stable start to 2025, indicating robust operational momentum [1][5]. Financial Performance - In 2024, the company achieved revenue of 3.25 billion yuan, a year-on-year increase of 67.7%, and a net profit attributable to shareholders of 1.34 billion yuan, up 84.1% [1]. - For Q4 2024, the company recorded revenue of 860 million yuan, with quarter-on-quarter growth of 17.0% and year-on-year growth of 2.2%, and a net profit of 370 million yuan, reflecting quarter-on-quarter growth of 26.2% and year-on-year growth of 13.9% [1]. - In Q1 2025, the company generated revenue of 950 million yuan, with quarter-on-quarter growth of 29.1% and year-on-year growth of 10.2%, while net profit was 340 million yuan, showing quarter-on-quarter growth of 21.1% but a year-on-year decline of 8.0% [1]. Product Line Performance - In 2024, the company’s active and passive product lines generated revenues of 1.66 billion yuan (up 121.9% year-on-year) and 1.58 billion yuan (up 33.2% year-on-year), respectively [2]. - The demand for passive components surged due to the AI data communication market, although certain telecom markets faced pressure [2]. - The company is focusing on high-speed data communication and silicon photonics products, with improvements in cost optimization and yield, leading to an 8.2 percentage point increase in passive gross margin compared to 2023 [2]. Strategic Developments - The company has commenced production at its Thailand factory, which is strategically positioned in the upstream of the optical module supply chain, minimizing the impact of tariff fluctuations [3]. - The Thailand factory has successfully passed customer certification for certain passive component product lines, with plans for expansion underway [3]. - The company is developing customized passive components and enhancing its capabilities in silicon photonics, which is expected to open up larger market opportunities [3]. Market Position and Future Outlook - The company is a key participant in the supply chain for NVIDIA's CPO, which is anticipated to drive new growth as the market expands [4]. - NVIDIA's CPO switches are projected to significantly reduce energy consumption and improve network reliability, with the CPO market potentially reaching $5 billion by 2030 [4]. - The company has begun small-scale deliveries of high-power lasers suitable for CPO applications, indicating readiness to capitalize on market opportunities [4]. Profit Forecast - The company expects a significant rebound in active business growth in the second half of the year, with projected net profits of 2.08 billion yuan, 2.88 billion yuan, and 3.24 billion yuan for 2025-2027, respectively [5]. - Corresponding EPS estimates are 3.75, 5.19, and 5.84 for the same periods, with the current valuation at a historical low [5].

Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [1][8]. Core Insights - The company has demonstrated robust operational performance, with a significant revenue increase of 67.7% year-on-year in 2024, reaching 3.25 billion yuan, and a net profit growth of 84.1%, amounting to 1.34 billion yuan [1][10]. - The first quarter of 2025 shows continued growth, with revenues of 950 million yuan, reflecting a 29.1% quarter-on-quarter increase, although net profit decreased by 8.0% [1][10]. - The company is positioned to benefit from the growing demand for its 1.6T and CPO products, with expectations of substantial revenue contributions from these segments in the near future [3][7]. Financial Performance Summary - In 2024, the company achieved revenues of 3.25 billion yuan, with a year-on-year growth of 67.7%, and a net profit of 1.34 billion yuan, up 84.1% [1][10]. - The revenue forecast for 2025 is projected at 5.21 billion yuan, with a year-on-year growth of 60.1%, and net profit expected to reach 2.08 billion yuan, reflecting a growth of 55.1% [10][12]. - The gross margin is anticipated to improve, with a forecast of 56.7% for 2025, compared to 57.2% in 2024 [10][12]. Market Position and Strategic Advantages - The company is a key player in the supply chain for Nvidia's CPO products, which are expected to drive new growth as the market expands [7]. - The establishment of a factory in Thailand enhances the company's position in the silicon photonics supply chain, allowing for reduced tariff impacts and increased production capabilities [4][7]. - The company is focusing on high-speed data communication and silicon photonics products, which are expected to see increased demand due to the growth of AI and data communication markets [3][4].

Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [1][5]. Core Insights - The company achieved a revenue of 3.25 billion yuan in 2024, representing a year-on-year growth of 67.7%, and a net profit of 1.34 billion yuan, up 84.1% year-on-year [1]. - The first quarter of 2025 showed steady operations with a revenue of 950 million yuan, a quarter-on-quarter increase of 29.1%, and a net profit of 340 million yuan, reflecting a year-on-year growth of 21.1% [1]. - The company is positioned as a key player in the silicon photonics supply chain, with its Thai factory now operational and expanding production capabilities [3][4]. Financial Performance - In 2024, the company’s active and passive product lines generated revenues of 1.66 billion yuan (up 121.9% year-on-year) and 1.58 billion yuan (up 33.2% year-on-year), respectively [2][5]. - The projected net profits for 2025, 2026, and 2027 are 2.08 billion yuan, 2.88 billion yuan, and 3.24 billion yuan, respectively, with corresponding EPS of 3.75, 5.19, and 5.84 [5][7]. - The gross margin is expected to improve, with a forecast of 56.7% in 2025, up from 54.3% in 2023 [7][9]. Market Position and Growth Drivers - The company is a significant participant in the CPO supply chain for NVIDIA, which is expected to drive new growth as the market expands [4]. - The demand for passive components is anticipated to surge due to the AI data communication market, despite some pressure in traditional telecom markets [2][3]. - The company’s unique position in the silicon photonics industry, along with its partnerships and product offerings, is expected to facilitate market expansion [3][4].