ZHONGJI INNOLIGHT(300308)2025-01-26 11:28Financial Performance Overview - In Q4 2024, the company anticipates a net profit of 4.6 to 5.8 billion CNY, a year-on-year increase of approximately 112% to 167% compared to 2.17 billion CNY in the same period last year [3] - The average gross margin for the entire year is projected to be around 34%, with a 1.5% increase in Q4 compared to Q3 [3] - Non-recurring net profit is expected to be between 4.5 to 5.7 billion CNY, also reflecting a year-on-year growth of about 112% to 169% [3] Market Demand and Supply Challenges - There is a strong demand for AI data center investments, with overseas customers' infrastructure construction growing rapidly compared to 2023 [4] - EML shortages are expected to impact revenue growth in Q3 and Q4, despite high order demand [4] - The company has completed testing and certification for 800G optical modules for CSP customers, with a focus on 400G demand in 2024 and an upgrade to 800G in 2025 [4] Customer Insights and Future Projections - The company has observed a significant increase in capital expenditures from overseas AI data center clients, which is beneficial for the optical module industry [5][7] - Orders are expected to continue growing in Q1 2025, reflecting strong demand [8] - The company anticipates a gradual easing of EML shortages in the first half of 2025, with a full resolution expected in the second half [9] Product Development and Innovations - The company is preparing for a gradual increase in shipments of 1.6T products starting in Q2 2025, with expectations of sequential growth throughout the year [10] - There is ongoing research and development for 3.2T products, although specific customer demand has not yet been established [12] - The introduction of silicon photonics modules is expected to alleviate some reliance on EML as 800G shipments increase [14] Strategic Market Positioning - The company maintains a strong position as a primary supplier for domestic large clients, despite a lower revenue proportion from the domestic market compared to overseas [13] - The company is committed to expanding its domestic market presence through dedicated subsidiaries [13] Closing Remarks - The company is optimistic about maintaining a positive growth trajectory in 2025, driven by increased investments in AI computing infrastructure from various clients [18]