Core Viewpoint - Cambridge Technology (06166) plans to conduct a global offering of 67.01 million H-shares from October 20 to October 23, 2025, with a maximum offer price of HKD 68.88 per share, and expects to list on the Hong Kong Stock Exchange on October 28, 2025 [1] Group 1: Company Overview - The company specializes in the design, development, and sales of connectivity and data transmission devices, ranking fifth in the global Optical and Wireless Connectivity Devices (OWCD) industry with a market share of 4.1% in 2024 [1] - The company has established stable partnerships with several global leaders, maintaining these relationships for over ten years [2] Group 2: Revenue Sources - The majority of the company's revenue comes from international markets, with overseas revenue accounting for 82.9%, 89.3%, 92.6%, and 94.0% of total revenue in 2022, 2023, 2024, and the first half of 2025, respectively [2] Group 3: Capital Raising and Use of Proceeds - The cornerstone investors have agreed to subscribe for shares worth approximately USD 290 million, translating to about 32.76 million shares at the maximum offer price [3] - The estimated net proceeds from the global offering are approximately HKD 4.48 billion, which will be allocated as follows: 50% for enhancing facilities and capacity, 20% for R&D talent and technology, 5% for sales and marketing, 15% for overseas strategic investments, and 10% for general corporate purposes [4] Group 4: Financial Performance - The company reported revenues of RMB 3.784 billion, RMB 3.085 billion, RMB 3.65 billion, and RMB 2.034 billion for the respective years, with gross profits of RMB 689 million, RMB 664 million, RMB 762 million, and RMB 445 million, reflecting gross margins of 18.2%, 21.5%, 20.9%, and 21.9% [5] - Net profits for the same periods were RMB 171 million, RMB 95 million, RMB 167 million, and RMB 118 million, with net profit margins of 4.5%, 3.1%, 4.6%, and 5.8% [5]

Core Viewpoint - Cambridge Technology Co., Ltd. is preparing for an IPO in Hong Kong, with the aim of raising funds for capacity enhancement, R&D, marketing, overseas investments, and general corporate purposes [1][2]. Group 1: IPO Details - The company has submitted its hearing materials for the IPO and is being exclusively sponsored by Guotai Junan Securities [1]. - The funds raised from the IPO will be allocated to various purposes, including increasing production capacity for optical modules, broadband, and wireless products [1]. Group 2: Business Overview - Cambridge Technology specializes in the design, development, and sales of connectivity and data transmission devices, covering broadband, wireless, and optical module technologies [2]. - The company has significant output in XGS PON products and leads in 25GPON and 50GPON technologies, with innovative research in silicon photonic modules [2]. - The company has a global presence, serving clients in 52 countries and regions [2].

Investment Rating - The report maintains a "Buy" investment rating for the company [8] Core Views - The company is expected to achieve a net profit attributable to shareholders of 3.7 billion to 4.2 billion yuan for the first half of 2025, representing a year-on-year growth of 327.68% to 385.47% [4][5] - The significant performance increase is driven by the continuous growth in AI-related computing power investments, product structure optimization, and sustained demand for high-speed products [5] - The company's Thailand factory has been operating efficiently since its first phase began in the first half of 2023, with the second phase expected to release capacity quickly in early 2025, focusing on the mass production of 1.6T modules [5] - The company has made breakthroughs in optical module technology, successfully launching industry-leading 800G/1.6T optical module products, which are expected to become a significant part of sales revenue in 2025 [6][8] Summary by Sections Financial Performance - The company forecasts revenues of 22.15 billion, 31.91 billion, and 40.86 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 8.47, 11.99, and 15.16 yuan [8][10] - The expected growth rates for revenue are 156.1% in 2025, 44.1% in 2026, and 28.0% in 2027 [10] Production Capacity - The Thailand factory is a core part of the company's globalization strategy, enhancing product delivery capabilities in overseas markets, particularly for North American cloud vendors [5] Technological Advancements - The company is actively investing in next-generation technology research and development, positioning itself competitively in the CPO technology field [6][7]

Group 1: Company Development Goals - The company aims to focus on its core business and enhance R&D capabilities for new products and technologies [1] - The company plans to strengthen market expansion and improve product competitiveness in key application areas [1] Group 2: R&D Innovations - The company has launched the latest 800G/1.6T optical module products and continues to optimize technology solutions [2] - Future R&D efforts will focus on expanding new technology routes [2] Group 3: Production Capacity - The second phase of the Thailand factory was officially put into operation in early 2025, contributing positively to production capacity [3] Group 4: Financial Performance and Dividends - The company plans to distribute cash dividends of RMB 4.5 per 10 shares, totaling approximately RMB 318.96 million, along with a capital reserve increase of 4 shares per 10 shares [5] - The company reported significant growth in Q1 2024 and anticipates continued high growth in Q2 [4][7] Group 5: Market Trends and Strategies - The company expects domestic market growth to remain strong due to increased AI infrastructure spending [6] - The company is actively addressing the impact of U.S. tariff policies on order demand [6] - The company will enhance overseas market promotion and customer expansion efforts [7] Group 6: Industry Outlook - The application scenarios for optical modules are primarily in telecommunications and data center fields, which are expected to maintain high demand [7]