Shijia Photons(688313) 国泰君安·2024-10-18 15:36Investment Rating - Maintains an "Overweight" rating with a target price of 15.60 RMB [3][5] Core Views - The company's Q3 2024 performance met expectations, with significant profit improvement [3] - Revenue for the first three quarters of 2024 reached 729 million RMB, a year-on-year increase of 34.77% [4] - Net profit attributable to the parent company for Q3 2024 was 24 million RMB, a year-on-year increase of 344.53% [4] - Gross margin for Q3 2024 reached 29.08%, an increase of over 5.3 percentage points quarter-on-quarter [4] - The company's high-end optical chip business is progressing, and its Thai subsidiary has started production [3][4] Financial Performance - Revenue for Q3 2024 was 280 million RMB, a year-on-year increase of 32.74% and a quarter-on-quarter increase of 11.5% [4] - The company's AWG chip manufacturing capability has led to significant economies of scale, reducing production costs and improving profitability [4] - The company expects continued growth in performance and profitability in Q4 2024, driven by orders from North American customers for 2025 modules [4] Business Development - The company has achieved commercial output of CW light sources at various power levels (50mW, 70mW, 100mW, 200mW, 900mW), which are expected to be used in 400G/800G silicon photonics modules and CPO-compatible ELSFP external light sources [4] - The company is also developing high-speed EML chips [4] - The Thai subsidiary, which produces indoor optical cables and various passive and active devices, is expected to contribute to business growth starting in Q4 2024 [4] Market and Industry - The demand for AWG/MPO components is strong, driven by the rapid adoption of 400G/800G products by downstream data communication customers [4] - The company's products, including AWG chip components, parallel optical components, and data center MPO jumpers, are seeing rapid growth in demand [4] Financial Forecasts - The company maintains its 2024-2026 net profit forecasts at 51 million RMB, 120 million RMB, and 215 million RMB, respectively, with corresponding EPS of 0.11 RMB, 0.26 RMB, and 0.47 RMB [4] - The target price remains at 15.60 RMB, with an "Overweight" rating [4]