Core Viewpoint - The report from Zheshang Securities highlights that Taicheng Light achieved a net profit attributable to shareholders of 173 million yuan in the first half of the year, representing a year-on-year increase of 118.0% [1] Financial Performance - In Q2 2025, the company realized a net profit of 94 million yuan, which is a year-on-year increase of 96.8% and a quarter-on-quarter increase of 18.4% [1] - The company's external sales revenue reached 681 million yuan in the first half of the year, marking a year-on-year growth of 71.19% [1] Market Demand and Growth Strategy - The explosive growth in global AI computing power demand has significantly boosted the company's demand [1] - The company is actively expanding production capacity through a dual approach of "domestic + overseas" strategies [1] Product Development and Supply Chain - MT insert is the core component of MPO connectors, and the company is focusing on independent research and production of MT inserts through its subsidiary [1] - The self-developed MT insert manufactured MPO connectors have achieved large-scale production and sales in the first half of the year, with ongoing efforts to certify more specifications of MT inserts [1] - The self-sufficiency of core components not only ensures supply chain security but also directly enhances product gross margins [1] Investment Rating - The report maintains a "Buy" rating for the company [1]

Group 1 - The core business of Fokexima includes the research, production, and sales of MT plug cores, components, and jumpers, among other MPO supporting parts [1]

Group 1 - The core viewpoint of the article highlights that Dacheng Fund recently conducted research on a listed company, focusing on its operational performance and market strategies [1] Group 2 - The company Tai Chen Guang (300570) specializes in passive optical devices, with over 90% of its revenue coming from this segment and maintaining a gross margin of around 30% [1] - The company has significantly expanded its MT connector production capacity and possesses advanced cutting and testing technologies [1] - Progress in the research and development of CPO-related products is on track, and the company maintains a leading position in flexible optical boards [1] - A close supply relationship has been established with the company's largest client, leading to market gains through new product development and application expansion [1] - The company emphasizes capital operations and employee incentives, aiming for continued positive development in the future [1] Group 3 - Dacheng Fund was established in 2019, with a total asset management scale of 1.455 billion yuan, ranking 174 out of 210 in the public fund category [1] - The fund's non-monetary public fund asset management scale is 1.454 billion yuan, ranking 151 out of 210 [1] - The fund manages 17 public funds, ranking 142 out of 210, with 4 fund managers, ranking 155 out of 210 [1] - The best-performing public fund product in the past year is Dacheng Value Pioneer Flexible Allocation A, with a latest net value of 0.74 and a growth of 23.79% over the past year [1]

证券日报网讯太辰光（300570）8月21日发布公告，在公司回答调研者提问时表示，自去年起，公司12 芯单模低损MT插芯已在客户端实现规模化应用，公司将持续推进更多规格MT插芯的认证工作。当前24 芯MT插芯主要依靠外购，公司同时保持自产与外购相结合的供应方式。 ...

Group 1: Business Structure and Financial Performance - The company's main products are passive optical devices, active optical devices, and optical sensing products, with passive optical devices accounting for over 90% of revenue [2][4] - The gross margin for Q1 2025 was high due to product structure, but it is not expected to be a norm; Q2 gross margin decreased compared to Q1 due to production line expansion [3][4] - The company has maintained a gross margin of around 30% in recent years and is confident in sustaining this level in the future [3] Group 2: Capacity and Production - The company is expanding capacity significantly by renting new factories domestically and utilizing a production base in Vietnam [4] - The capacity changes disclosed in the semi-annual report do not reflect the true situation due to the variety of products involved [4] Group 3: Market and Trade Impact - The impact of U.S. tariffs on the company is minimal, as the settlement model with major clients is based on FOB, allowing for effective communication and compliance to mitigate tariff effects [5] - The company is optimistic about future development, especially in the context of AI-driven global computing demand [6] Group 4: Research and Development - The company has significantly expanded MT connector capacity and possesses advanced cutting and testing technology, enhancing the competitiveness of its single-mode low-loss MT connectors [7] - Ongoing R&D efforts focus on CPO-related products, including flexible boards and high-core-count connectors, maintaining a leading position in the flexible board sector [8][10] - The company is developing new products such as hollow-core fibers and V-groove products, targeting market-leading technologies and customer needs [11] Group 5: Customer Relations and Market Strategy - The company has a high dependency on its largest customer but maintains a strong supply relationship, aiming to diversify its customer base and product applications [17] - The company emphasizes the use of capital to accelerate development and plans to disclose relevant matters in accordance with regulatory requirements [18] Group 6: Employee Incentives - The company adheres to a principle of shared benefits and plans to continue incentivizing employees who contribute significantly to its success [18]

Core Viewpoint - The company has raised its profit forecast and target price while maintaining a buy rating, driven by significant year-on-year growth in performance and strong industry demand [1][2]. Group 1: Financial Performance - The company announced its 2025 semi-annual report, showing a revenue of 828 million yuan, a year-on-year increase of 62.49%, and a net profit attributable to shareholders of 173 million yuan, a year-on-year increase of 118.02% [2]. - The revenue growth is primarily attributed to strong investment in AI data centers, leading to a substantial increase in orders. The net profit growth outpaced revenue growth due to the successful in-house development of key components, such as MT connectors, which replaced external purchases and significantly improved gross margins [2]. Group 2: Product Development and Market Position - The company has focused on promoting high-density connection products, including flexible optical boards and MDC connectors, which are now being scaled in data centers, effectively adapting to the wave of CPO technology upgrades [3]. - The company has customized flexible optical board products for multiple clients and is collaborating with various domestic and international manufacturers to develop passive fiber solutions based on flexible optical boards, while also upgrading optical waveguide products to meet the demand for high-speed optical modules [3]. Group 3: Catalysts for Growth - The acceleration of CPO technology implementation and the continuous expansion of the company's production capacity are seen as key catalysts for future growth [4].

Group 1 - The company confirmed that its products in the optical module field include ceramic inserts, ceramic sleeves, MT inserts, ceramic pins, and quick connectors [2]

Core Insights - The CPO (Co-Packaged Optics) sector has seen significant activity, with the CPO index rising nearly 20% in July, driven by strong demand in the Chinese market and the approval of H20 chips for export to China [1][2] - Companies like Shijia Photon have reported impressive earnings growth, with a 121.12% increase in revenue and a 1712.00% rise in net profit for the first half of 2025, attributed to the rapid growth of the data communication market driven by AI [2][3] Company Performance - Shijia Photon achieved a revenue of 993 million yuan and a net profit of 217 million yuan in the first half of 2025, marking the first time its net profit exceeded 100 million yuan since its listing [2][3] - The company’s revenue from optical chips and devices grew by 190.92%, indoor cable business increased by 52.93%, and polymer materials for cables rose by 23.39% [2][3] Market Expansion - Shijia Photon is accelerating its overseas market expansion, with foreign revenue reaching 452 million yuan, a 323.59% increase, accounting for 45.50% of total revenue [3] - The company has established a subsidiary in Singapore and is expanding production capacity in Thailand [3] Financial Management - R&D expenses for Shijia Photon reached 61.42 million yuan, while management expenses grew by 54.66% to 50 million yuan, reflecting the company's expansion and operational improvements [3] - Short-term borrowings increased by 1905.29% to 206 million yuan, indicating a significant rise in funding needs for production expansion [3] Strategic Acquisitions - Shijia Photon plans to acquire an 82.38% stake in Dongguan Fokexima Communications Technology to enhance its MPO supply chain, with the share price set at 28.24 yuan per share [4][5] - Fokexima has shown substantial growth, with a revenue of 270 million yuan in 2024, up 225.04%, and a net profit of 79.94 million yuan, up 338.64% [4][5] Future Outlook - Goldman Sachs has raised its sales forecasts for 800G optical transceiver modules for 2025 and 2026, predicting a market value of 12.73 billion USD and 19.37 billion USD respectively, indicating strong growth potential in the optical module market [5][6] - Shijia Photon’s stock price surged from 16.98 yuan at the beginning of the year to a high of 66.95 yuan, reflecting a 263.84% increase, although it experienced a decline of over 7% following major announcements [6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Viewpoints - The company plans to acquire 82.4% of Fokexima's equity through a combination of share issuance and cash payment, which will enhance its control in the MT connector field and strengthen vertical integration and cost control advantages in its MPO core components [5][11] - Fokexima, a leading third-party MT connector supplier in China, has shown significant growth, with revenue increasing by 225% year-on-year to 270 million yuan in 2024, and net profit growing by 339% to 79.94 million yuan [11] - The global MPO fiber optic connector market is expected to grow from 741 million USD in 2024 to 1.592 billion USD by 2030, with a compound annual growth rate (CAGR) of 13.6% [11] Summary by Sections Event Description - On July 10, 2025, the company announced its intention to acquire 82.3810% of Fokexima's equity from five parties, which will make Fokexima a subsidiary of the company [5] Financial Performance - Fokexima achieved a monthly production capacity of over 10 million MT connectors in 2023 and has become one of the few manufacturers capable of complete domestic substitution [11] - The company's projected net profits for 2025-2027 are 372 million yuan, 518 million yuan, and 709 million yuan, respectively, with corresponding year-on-year growth rates of 472%, 39%, and 37% [11]

Group 1 - Shanghai Xiangchu Asset Management recently conducted research on a listed company, Shijia Photon, focusing on its acquisition of Fuke Qima, a leading domestic MT connector supplier [1] - Fuke Qima achieved a revenue of 82.578 million yuan and a net profit of 30.6865 million yuan in Q1 2025, with its products being recognized by well-known market clients [1] - The acquisition is expected to enhance Shijia Photon's core competitiveness by obtaining MT connector production capabilities, reducing overall product costs [1] Group 2 - Fuke Qima has a high capacity utilization rate and has developed a flexible expansion plan to adjust production based on market demand [1] - The valuation and pricing of the acquisition have not yet been determined and will be disclosed in the restructuring report [1]