ZHONGJI INNOLIGHT(300308) 国盛证券·2024-10-23 06:43Investment Rating - The report maintains a "Buy" rating for Zhongji Innolight (300308 SZ) [2][3] Core Views - Q3 2024 revenue reached 6 51 billion yuan up 115 2% YoY and 9 4% QoQ Net profit attributable to parent company was 1 394 billion yuan up 104 4% YoY and 3 3% QoQ [1] - Q3 financial performance was impacted by RMB appreciation with financial expenses of 72 93 million yuan compared to -40 17 million yuan in Q2 resulting in a 113 million yuan impact on Q3 net profit [1] - Gross margin and net margin for Q3 were 33 64% and 22 48% respectively both showing YoY improvement [1] - Inventory at the end of Q3 was 7 153 billion yuan up from 6 169 billion yuan at the end of the previous quarter driven by increased orders for high-end optical modules [1] - The company is expected to benefit from the 800G 1 6T optical module upgrade cycle with strong growth prospects in the AI-driven market [1][2] Financial Performance - Revenue for 2024E is projected at 23 524 billion yuan with a YoY growth of 119 5% Net profit attributable to parent company is expected to reach 5 59 billion yuan up 157 2% YoY [3] - EPS for 2024E is forecasted at 4 99 yuan per share with a P E ratio of 34 1x [3] - Revenue growth is expected to continue with 2025E and 2026E revenues projected at 37 367 billion yuan and 48 038 billion yuan respectively [3] - Net profit for 2025E and 2026E is estimated at 9 784 billion yuan and 12 987 billion yuan respectively [3] Industry Outlook - The optical module industry is accelerating its iteration cycle with AI driving demand for higher-speed products such as 800G and 1 6T [1] - The industry is expected to further consolidate with leading companies like Zhongji Innolight benefiting from their technological edge and close customer relationships [1] - The company is well-positioned to capitalize on the 800G 1 6T upgrade cycle with strong growth potential in the AI-driven market [1][2] Financial Ratios - ROE for 2024E is projected at 28 4% up from 15 2% in 2023A [3] - Gross margin for 2024E is expected to be 34 6% with net margin at 23 8% [3] - P B ratio for 2024E is forecasted at 9 7x down from 13 4x in 2023A [3]