EOPTOLINK(SZ:300502)2025-08-27 15:20Eoptolink Technology (300502.SZ) Investor Call Summary Industry Overview - The call focused on the optical communication industry, specifically Eoptolink Technology's performance and outlook in this sector [2][3]. Key Points and Arguments 1. Stock Price Correction: The current stock price correction is viewed as a buying opportunity, with expectations of benefiting from an increasing SiPh mix and market share gains [3]. 2. Robust Industry Demand: Management reported solid revenue growth in 2Q25 driven by strong industry demand, with increasing orders from key customers and a higher mix of high-speed rate products [3][4]. 3. 1.6T Product Ramp: Management anticipates further ramp-up of the 1.6T product in 2H25, with expectations of even stronger demand next year, although customer progress may vary [4]. 4. SiPh Development: A dedicated R&D team is focusing on SiPh transceiver products, with expectations of a higher industry SiPh mix starting from 2H25, likely continuing into 2026 [4]. 5. LPO/LRO Confidence: Management remains confident in their LPO/LRO products, positioning themselves as leaders in this area and expecting to capture a certain market share [4]. 6. Chip Supply Situation: Despite a tight supply of EML/VCSEL chips, management believes it will not impact production or shipment due to strong supply chain control [5]. 7. Gross Margin Outlook: The gross profit margin is expected to remain stable in the near term, with a mild quarter-over-quarter decline in 2Q25 GPM viewed as temporary [5]. Financial Metrics - Current Price: Rmb282.040 - Target Price: Rmb321.000, indicating a potential upside of 13.8% [6]. - Expected Dividend Yield: 0.4% - Expected Total Return: 14.3% - Market Capitalization: Rmb280,267 million (approximately US$39,190 million) [6]. Risks 1. Slower-than-expected data center investments 2. Lower-than-expected optical network capital expenditures by telecommunications companies and government entities in China 3. Margin pressures due to price competition 4. Slower-than-expected expansion of new customers 5. Ongoing China-US technology disputes [10]. Additional Insights - The company is positioned to leverage the strong 800G/1.6T cycle, despite potential long-term threats from CPO technology [8].