EOPTOLINK(300502) 山西证券·2024-09-13 12:23Investment Rating - The report upgrades the investment rating of the company to "Buy-A" [3][7]. Core Views - The company has achieved significant growth in revenue and profit in the first half of 2024, driven by increased capital expenditures from major North American clients in the AI sector [4][5]. - The company is positioned as a core supplier of high-speed optical modules for major North American cloud providers, benefiting from the growing demand for AI infrastructure [5][6]. - The company's product offerings have been enhanced, with a focus on high-end products, leading to improved gross margins and profitability [6][7]. Company Performance - In the first half of 2024, the company reported revenue of 2.73 billion yuan, a year-on-year increase of 109.1%, and a net profit of 870 million yuan, up 200.0% year-on-year [4]. - The second quarter alone saw revenue of 1.62 billion yuan, with year-on-year growth of 129.2% and a net profit of 540 million yuan, reflecting a year-on-year increase of 199.5% [4]. Market Dynamics - The global market for optical modules used in AI clusters is expected to exceed 7 billion in 2025 and reaching $12 billion by 2029 [5]. - The company has seen a 12.4% increase in optical module sales, with revenue growth of 113.0%, indicating a shift towards higher-end products [6]. Financial Projections - The report revises the profit forecast for the company, expecting net profits of 2.20 billion yuan, 4.36 billion yuan, and 4.84 billion yuan for 2024, 2025, and 2026 respectively [7]. - The gross margin is projected to improve to 44.0% in 2024, with a net profit margin of 32.3% [9][12].