ACCELINK(SZ:002281)2025-10-31 00:59Summary of Accelink's 3Q25 Earnings Call Company Overview - Company: Accelink (Ticker: 002281.SZ) - Sector: Technology - Date of Earnings Report: 24 October 2025 Key Financial Highlights - Revenue Growth: - 3Q25 revenue increased by 45.0% year-over-year (y-y) and 8.9% quarter-over-quarter (q-q) to CNY 3.29 billion - 9M25 revenue growth was 58.65% y-y, with earnings growth at 54.95% y-y [1][2] - Earnings Performance: - 3Q25 earnings increased by 35.8% y-y and 56.0% q-q, reaching CNY 347 million - Adjusted operating margin improved by 0.2 percentage points (pp) y-y and 4.8 pp q-q [1][5] - Gross Margin: - Gross margin decreased by 1 pp y-y but increased by 3.9 pp q-q due to a better product mix in the optical transceivers sector [1][5] - Operating Cash Flow: - Strong performance with operating cash flow reaching CNY 1.08 billion in 9M25, a 206.64% increase y-y [1] Market and Industry Insights - Demand Trends: - Notable uptick in demand for optical transceivers in the global Automatic Identification and Data Capture (AIDC) market - Large Chinese Cloud Service Providers (CSPs) are investing in AI infrastructure, positioning Accelink to benefit from this trend [2] - Future Growth Projections: - Estimated 53% revenue compound annual growth rate (CAGR) from the optical transceivers segment for FY25-27F, expected to contribute 49% of total revenue by FY27F [2] Investment Outlook - Rating and Target Price: - Maintained "Buy" rating with a target price of CNY 80, based on a price-to-earnings (P/E) ratio of 43x FY26F earnings per share (EPS) of CNY 1.87 [2][3] - Current Stock Valuation: - Stock trading at 33.8x FY26F EPS, indicating potential upside [2] Risks and Challenges - Potential Risks: - Lower-than-expected demand for optical components from the datacom and telecom markets - Slower-than-anticipated R&D progress on optical chipsets - Increased pricing competition leading to margin dilution - Potential sanctions affecting the technology sector [12] Additional Information - Analysts: Bing Duan and Ethan Zhang from Nomura International (Hong Kong) Ltd. [4] - Closing Price on Report Date: CNY 63.23 [3]