Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has reported earnings in line with expectations, benefiting significantly from the construction of AI computing infrastructure [4][5] - In 2024, the company achieved revenue of 23.862 billion yuan, a year-on-year increase of 122.64%, and a net profit of 5.171 billion yuan, up 137.93% year-on-year [4] - The company has increased its profit forecasts for 2025 and 2026 to 8.783 billion yuan and 12.313 billion yuan, respectively, and introduced a new forecast for 2027 at 16.206 billion yuan [4] Financial Performance - In Q1 2025, the company reported revenue of 6.674 billion yuan, a year-on-year increase of 37.82%, and a net profit of 1.583 billion yuan, up 56.83% year-on-year [4] - The gross margin for Q1 2025 was 36.70%, an increase of 3.94 percentage points year-on-year, while the net profit margin was 25.33%, a decrease of 4.11 percentage points year-on-year [4] - The company’s R&D expenses in Q1 2025 were 290 million yuan, a year-on-year increase of 12.80%, with an R&D expense ratio of 4.35% [6] Market Position - The company ranked first globally in the optical module manufacturer rankings published by Lightcounting in 2023, with overseas revenue reaching 20.716 billion yuan in 2024, a year-on-year increase of 128.32% [5] - The company has established strong long-term partnerships with major clients and suppliers, leveraging its leading technology and cost-effective manufacturing capabilities [5] Future Outlook - The company is expected to continue benefiting from the growing demand for high-end optical modules, particularly 800G and 400G modules, driven by increased capital expenditures in computing infrastructure [4][6] - The company has a robust patent portfolio with 371 patents, including 195 invention patents, indicating a strong focus on innovation and technology development [6]