Core Viewpoint - The company reported significant growth in revenue and net profit for the first half of 2025, driven by the increasing demand for high-end optical modules due to AI applications [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 10.437 billion yuan, a year-on-year increase of 282.6%, and a net profit attributable to shareholders of 3.942 billion yuan, up 355.7% [1]. - For Q2 2025, the company recorded revenue of 6.385 billion yuan, representing a year-on-year growth of 295.4% and a quarter-on-quarter increase of 57.6% [1]. - The sales volume of optical modules reached 6.95 million units in the first half of the year, a year-on-year increase of 112.5%, with overseas sales accounting for 5.57 million units [1]. Cost Management and Profitability - The company demonstrated excellent cost control, with a sales expense ratio of 0.81%, down 0.31 percentage points from the previous year, and a management expense ratio of 1.20%, down 0.76 percentage points [2]. - The gross margin for optical modules was 47.48%, an increase of 4.12 percentage points year-on-year, attributed to the rising proportion of high-end optical module revenue [2]. Research and Development - The company invested 334 million yuan in R&D in the first half of 2025, a year-on-year increase of 157.6%, with multiple breakthroughs in new products and technologies [2]. - The company successfully launched new optical module products, including 1.6T/800G single-wave 200G optical modules, and expanded its product range to include various high-speed optical modules [2]. Investment Outlook - Given the sustained high demand for high-end optical modules driven by AI, the company has adjusted its profit forecasts for 2025-2027, expecting net profits of 8.728 billion yuan, 13.019 billion yuan, and 15.706 billion yuan, respectively [3]. - The company is well-positioned in the data communication optical module sector, maintaining strong ties with leading overseas manufacturers while focusing on new customer acquisition [3].

Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company's revenue for the first half of 2025 reached 10.437 billion yuan, a year-on-year increase of 282.6%, with a net profit attributable to shareholders of 3.942 billion yuan, up 355.7% [1][2]. - The strong performance is driven by the high demand for AI and the accelerated release of high-end optical modules, with sales volume reaching 6.95 million units, a 112.5% increase year-on-year [2]. - The company has a robust capacity expansion plan, with production capacity for optical modules at 15.2 million units, a 66.7% increase year-on-year, and ongoing expansion in overseas production [2]. - The company has demonstrated excellent cost control, with a decrease in sales, management, and R&D expense ratios compared to the previous year, contributing to an increase in gross margin to 47.48% [2]. - The company is actively investing in R&D, with expenses of 334 million yuan in the first half of 2025, a 157.6% increase year-on-year, and has made significant progress in developing new products and technologies [3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 6.385 billion yuan, a year-on-year increase of 295.4%, and a net profit of 2.370 billion yuan, up 338.4% year-on-year [1][2]. - The projected net profits for 2025-2027 are 8.728 billion yuan, 13.019 billion yuan, and 15.706 billion yuan, respectively, with corresponding PE ratios of 35x, 24x, and 20x [4]. Market Position and Strategy - The company is well-positioned in the optical module market, with strong ties to leading overseas manufacturers and a focus on acquiring new customers [3]. - The report highlights the company's comprehensive layout in cutting-edge fields, particularly in high-speed optical modules, which are expected to benefit from the ongoing demand driven by AI [3]. Future Outlook - The company is expected to continue benefiting from the growth in demand for high-end optical modules due to AI, with an upward revision of profit forecasts reflecting this trend [3].