新易盛20251029

Summary of Conference Call for NewEase (新易盛) Company Overview - The company is actively expanding production to meet the growing orders from overseas major clients, with a clear demand expected for the next year, leading to rapid capacity expansion [2][4][24]. Key Points Industry and Market Demand - The company anticipates a significant increase in demand for 1.6T optical modules in Q4 of this year and into next year, with both shipment volume and revenue share expected to rise [2][9]. - The overall market outlook remains optimistic, with a clear demand forecast for 2026 and continued high growth expected in 2027 [2][24]. Production and Supply Chain Management - The company has established long-term partnerships and inventory strategies to mitigate upstream supply pressures, ensuring that these will not significantly impact capacity release in the coming year [2][5][8]. - The second phase of production capacity in Thailand is being gradually released, with full production not expected until next year [6]. Financial Performance - The third quarter showed stable performance, with minor fluctuations in revenue attributed to the delivery schedules of certain clients, which is considered a temporary issue [3][10]. - Inventory increased by 700 million, which is viewed as a normal occurrence and not indicative of any major changes in production or inventory strategy [7]. Technological Advancements - The company is focusing on silicon photonics technology, with expectations that its share of related products will increase significantly next year, particularly in high-speed products like 800G and 1.6T [2][13]. - The company is also exploring advancements beyond 1.6T, including potential developments in 3.2T technology to maintain competitiveness and profitability [2][14]. Customer and Product Insights - The demand from clients includes products in the 400G and 800G categories, with 800G's share gradually increasing [18][20]. - The company has already begun planning for the shipment of silicon photonic chips, leveraging technology acquired from a North American company [21]. Research and Development - R&D expenses saw a decrease in the third quarter, which is viewed as a temporary fluctuation rather than a long-term trend [22]. Future Pricing and Contracts - Pricing for modules in the coming year has not been finalized, as it varies by client and order confirmation timelines [23]. Additional Insights - The company emphasizes the importance of maintaining strong relationships with all clients, particularly in the context of the growing AI industry, aiming to enhance market share through product delivery [25].