EOPTOLINK(300502) 国金证券·2025-03-18 10:00Investment Rating - The report gives a "Buy" investment rating for the company, with a target price of 112.7 RMB based on a 14x PE for 2025 [3]. Core Insights - The company has achieved significant revenue growth, with a 145.82% year-on-year increase in revenue to 5.13 billion RMB and a 283.20% increase in net profit to 1.65 billion RMB in the first three quarters of 2024 [1][14]. - The company is well-positioned in the optical module industry, focusing on high-margin products and expanding its market share, particularly in overseas markets [2][47]. - The company is actively investing in new technologies such as LPO (Linear Drive Pluggable Optical Module) and AEC (ASIC-Enabled Connectivity), which are expected to drive future growth [2][54]. Summary by Sections 1. Company Performance - The company has seen a substantial increase in revenue and net profit in 2024, with revenue reaching 51.30 billion RMB and net profit at 16.46 billion RMB [1][14]. - The gross margin for the company exceeded 40%, significantly higher than comparable companies, due to its self-processing of high-cost raw materials [1][21]. - The company’s overseas revenue share has increased to 79.56%, indicating strong demand from international clients [2]. 2. Industry Outlook - The optical module market is expected to grow significantly, with a projected market size of over 90 billion USD in 2024, driven by increasing demand from cloud service providers [39][45]. - The company is well-positioned to benefit from the rapid technological advancements in the optical module sector, particularly with the rise of AI and high-speed data transmission requirements [41][56]. - New technologies such as silicon photonics, CPO, and LPO are anticipated to dominate the market, with the company already making significant investments in these areas [48][54]. 3. Financial Projections - Revenue projections for 2024-2026 are 87.2 billion RMB, 182.4 billion RMB, and 255.1 billion RMB, respectively, with corresponding net profits of 29.0 billion RMB, 57.1 billion RMB, and 79.2 billion RMB [3][33]. - The company’s earnings per share (EPS) are expected to grow significantly, reaching 11.17 RMB by 2026 [3]. 4. Investment Plans - The company plans to raise up to 1.88 billion RMB through convertible bonds to fund high-speed optical module projects in Chengdu and Thailand [27][28]. - The investment will primarily focus on expanding production capacity and enhancing technological capabilities in the optical module sector [27].