Finance Association, April 21 (Reporter Fu Jing) Benefiting from the increase in sales of 800G and 400G high-speed optical modules, Zhongji Xuchuang (300308.SZ)'s net revenue has increased quarterly since last year. In the first quarter of this year, net profit for a single quarter even exceeded 1 billion yuan. A Financial Services Association reporter called Zhongji Xuchuang Securities Department this week. Company sources said that the market trend in the first quarter was good, and orders and production capacity were relatively full.

This afternoon, the latest financial data disclosed by Zhongji Xuchuang showed that in the first quarter of this year, the company achieved revenue of 4.843 billion yuan, an increase of 163.59% over the previous year; net profit to mother was 1,009 billion yuan, an increase of 303.84% over the previous year. Last year, the company achieved revenue of 10.718 billion yuan, an increase of 11.16% over the previous year, and net profit of 2,174 billion yuan, an increase of 77.58% over the previous year.

A Financial Services Association reporter combed through the results of Zhongji Xuchuang's various periods since its listing and found that its net profit levels surpassed 100 million yuan, 1 billion yuan, and 2 billion yuan in 2017, 2022, and 2023, respectively. The Q1 single quarter's net profit of over 1 billion yuan has already set a record for the highest profit in a single quarter.

In fact, prior to the disclosure of this financial data, there was market news that Zhongji Xuchuang's Q1 net profit this year was between 1 billion and 1.1 billion yuan.

In response to the increase in performance, Zhongji Xuchuang stated in its annual report that the share of shipments of high-end products such as 800G/400G has increased and the product structure has been optimized. In terms of revenue share, the revenue of the optical communication transceiver module sector accounted for 95.00% of total revenue last year, of which high and medium speed optical communication modules accounted for 91.42% and 3.58% respectively; last year, the gross margin of optical communication transceiver modules was 34.14%, up from 29.80% in the same period last year, but production capacity, production volume, and sales volume were 9.77 million units, 6.81 million units, and 7.45 million units respectively, all down from the same period last year.

The overall trend is positive. However, Zhongji Xuchuang's net profit in Q1 this year increased 15% month-on-month. Compared with last year's Q3 (nearly doubling) and last year's Q4 (up 28.67%), the month-on-month growth rate has slowed. In addition, the Financial Services Association reporter asked what the overall trend is expected this year. Company sources said it will mainly depend on the growth in customer demand.

According to a Financial Services Association reporter, the total sales amount of its top five customers last year accounted for 73.71% of total annual sales. Among them, the largest customer accounts for 36.30% of the total sales amount, which is close to 40%. Over 80% of the company's revenue comes from overseas. Last year, it sold 4.89 million optical communication transceiver modules overseas, with a gross profit margin of 37.68%.

Since last year, optical module concept stocks have continued to have strong logic driven by the demand for AI computing power for high-speed optical modules. Tianfu Communications (300394.SZ), which has also received market attention, also released an annual report today stating that rapid growth in computing power demand is leading the development of high-speed optical devices. Last year's revenue increased 62.04% year on year, and net profit to mother increased 81.14% year on year.

However, although it is also a popular optical module stock, industry manufacturers are experiencing a situation where “a few companies are happy and a few are worried.”

According to Tefa Information (000070.SZ)'s previous performance forecast, last year's net profit changed from profit to loss year on year, with a maximum pre-loss of 300 million yuan. The main reason is that the market expansion of individual mergers and acquisitions subsidiaries fell short of expectations last year, while several major projects under construction were transferred to fixed assets at the end of 2022, leading to an increase in depreciation and amortization expenses last year. However, there is no relevant disclosure regarding the optical module that the market is most concerned about.

It is worth noting that optical modules are currently mainly used in the digital communication market, telecom market, and emerging markets. Although the digital communication market is growing at an obvious rate, demand for telecommunications has declined. Precisely because the telecom business was affected by weakening demand for structural adjustments in the industry, the performance of manufacturers in the same industry as Xinyisheng (300502.SZ) declined year-on-year last year.