EOPTOLINK(300502) 华泰证券·2025-04-23 08:13Investment Rating - The report maintains a "Buy" rating for the company [8] Core Insights - The company reported a significant revenue increase of 179% year-on-year for 2024, reaching 8.6 billion RMB, with a net profit growth of 312% to 2.84 billion RMB, aligning with previous forecasts [1] - In Q1 2025, the company achieved a revenue of 4.1 billion RMB, marking a 264% year-on-year increase and a 15% quarter-on-quarter growth, with net profit soaring 385% year-on-year to 1.57 billion RMB [1] - The growth is primarily driven by the rapid demand for 400G and 800G optical modules, and the company is expected to benefit from the AI computing industry chain [1][4] Revenue Growth - The point-to-point optical module business generated 8.6 billion RMB in 2024, a 183% increase, with overseas revenue at 6.8 billion RMB (up 162%) and domestic revenue at 1.8 billion RMB (up 266%) [2] - The company anticipates continued high revenue growth due to increasing optical module demand and expanding customer base in 2025 [2] Profitability and Cost Management - The overall gross margin for 2024 was 45%, up 14 percentage points year-on-year, with Q1 2025 gross margin at 49%, a 0.5 percentage point increase quarter-on-quarter [3] - Effective cost control is evident with sales, management, and R&D expense ratios decreasing year-on-year in Q1 2025 [3] Future Opportunities - The company is positioned as a leading manufacturer of high-speed optical modules, with successful advancements in new products such as the 800G single-wave 200G optical module [4] - The completion of the second phase of the factory in Thailand is expected to mitigate potential tariff risks, and the gradual ramp-up of 800G and 1.6T products is anticipated to contribute to new growth points [4] Valuation and Price Target - The revenue assumptions for high-speed products have been revised upwards for 2025-2026, with target revenues set at 4.839 billion RMB for 2025 and 6.174 billion RMB for 2026 [5] - The target price is set at 128.76 RMB, based on a 19x PE ratio for 2025, reflecting a decrease from the previous 35x PE due to market concerns over tariffs [5]