Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company achieved a revenue of 32.05 billion yuan in the first half of 2025, representing a year-on-year growth of 20.42%. The net profit attributable to shareholders was 1.613 billion yuan, with a slight increase of 0.24% [1]. - In Q2 2025, the company reported a revenue of 18.781 billion yuan, a year-on-year increase of 26.64%, while the net profit attributable to shareholders was 1.056 billion yuan, showing a decrease of 3.63% compared to the previous year [2]. - The company has secured multiple marine project contracts, with an order backlog of approximately 20 billion yuan in the energy interconnection sector, which is expected to support future growth [3]. - The company has demonstrated the capability for industrialization of various new types of optical fibers, including hollow-core fibers, which have achieved international advanced performance levels [4]. - The company is actively expanding production to meet future demand, with a new advanced optical fiber materials R&D and manufacturing center set to be completed by February 2026 [5]. - The company is strategically positioning itself in the AI sector, launching new cooling solutions and a full range of optical module products to support domestic supercomputing centers [6]. Financial Summary - The company’s gross margin for H1 2025 was 13.59%, with a net profit margin of 5.4%. In Q2, the gross margin was 13.56%, and the net profit margin improved to 6.05% [2]. - The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to 3.3 billion, 4.1 billion, and 5 billion yuan respectively, with corresponding PE ratios of 15, 12, and 10 times [7]. - The company’s total assets are projected to grow from 62.49 billion yuan in 2023 to 85.54 billion yuan by 2027, indicating a strong growth trajectory [13].

Core Viewpoint - The company focuses on developing and manufacturing optical modules and comprehensive optical interconnection solutions, aiming to support customers in building high-bandwidth, low-power intelligent optical interconnection networks [1] Group 1: Product Offerings - The company provides a full range of 10G/25G/50G CWDM colored optical modules and BIDI module product solutions for wireless front-haul applications [1] - For government and enterprise network applications, the company offers a complete series of 1.25G/3.125G/10G/25G/50G CWDM module product solutions based on colored optical architecture, as well as GPON/XGSPON OLT optical modules and GPON/XGSPON ONU Stick and Micro ONU access optical module product solutions based on PON architecture [1] - In the broadband PON access application area, the company provides GPON/XGPON/XGSPON and COMBO PON OLT module product solutions, and has launched the 50G COMBO PON OLT asymmetric optical module for the next generation of 50G PON "10G optical network" applications, which meets SFP-DD standard packaging requirements [1] - For computing center application scenarios, the company offers a full range of AOC products from 10G to 400G and high-speed optical module products [1] Group 2: Strategic Focus - The company is actively laying out advanced packaging capabilities for CPO to meet the demands of the next generation of high-speed optical interconnection products [1]